I think a likely and hidden contributor to the BigTech layoffs of 2023 is the development of AI. I know there are other reasons, but it didn't hurt that they had labor saving AI systems built that could handle the load.
After hiring a lot of people, having systems built, and training data developed, they could replace large amounts of staff that used to need to do manual work those AI systems. Less manual moderation, more automated responses. It became "fashionable" to cut staffing levels, so companies followed suit.
Most tech leaders avoid talking about how much labor AI will replace. We don't know yet, but it likely follow trends of making junior roles harder to find while making seniors more valuable with a slight reduction in the overall workforce. This has been present in all industries
After hiring a lot of people, having systems built, and training data developed, they could replace large amounts of staff that used to need to do manual work those AI systems. Less manual moderation, more automated responses. It became "fashionable" to cut staffing levels, so companies followed suit.
Most tech leaders avoid talking about how much labor AI will replace. We don't know yet, but it likely follow trends of making junior roles harder to find while making seniors more valuable with a slight reduction in the overall workforce. This has been present in all industries