I 100% agree that this is the right question. My intuition is that higher interest rates, lower multiples, and layoffs are the cause. AI is just what we point to to give ourselves comfort that our smaller teams can accomplish as much as our bigger teams used to.

I would put gross overhiring (and overpaying) which caused a positive(/negative) feedback loop and fomo ahead of the other factors. The pace and scale of hiring wasnt even justified by the rates / multiples which had been low (rates ) and high (multiples) for the best part of a decade.