Keep in mind companies planned like it was sustainable and hired a lot because from a business perspective, its much easier to overhire and lay off later than i

Keep in mind companies planned like it was sustainable and hired a lot because from a business perspective, its much easier to overhire and lay off later than it is to be understaffed during a period of potential unprecedented growth. It doesn't fully rationalize many companies actions but its just an application of a regret minimization framework. I personally don't believe its a massive function of Generative AI (although it could be), I think the major contributing factor is that the projections that companies made in 2020/2021 and the hiring they did to resource more projects to take advantage of those rosy projections ended up falling short of real expectations. i.e instead of needing to take advantage of a potential 20% yoy future growth in their target markets, they only really need to staff for a 10% yoy growth. Also probably a bit of "monkey see monkey do" where a company that actually needs to layoff (meta) lays off a bunch of people, and other large companies that may not "need" to layoff (like Google) follow suit since now its "socially acceptable."