This seems logical. The software engineers are likely going to be some of the highest paid employees, so laying off underperforming engineers is going to help reduce labor costs substantially.
Many of these engineers have been hired for new business units that didn't end up being profitable with cheap credit going away. Others might be in business unit that is purely a cost center.
Nothing has really changed over the past few decades. Regardless of your role strive to be part of the company that produces the company's profit. Try to avoid parts of the company that are viewed as cost centers and are constantly under the eye of finance as they manage costs. You will find how are you treated in good and bad times radically different.
Many of these engineers have been hired for new business units that didn't end up being profitable with cheap credit going away. Others might be in business unit that is purely a cost center.
Nothing has really changed over the past few decades. Regardless of your role strive to be part of the company that produces the company's profit. Try to avoid parts of the company that are viewed as cost centers and are constantly under the eye of finance as they manage costs. You will find how are you treated in good and bad times radically different.