Mostly true, but AI accelerated that process:

- Senior Engineers now often is sufficient for most tasks, Junior Engineers seems like a burden rather than a boost during development process

- Companies feel comfortable with hiring fast and firing fast

- Tech Market is now flooded with not-so-good engineers having good experience with good AI coding assistants - which already are capable of solving 80% of the problems - they are ready to work for much less than really experienced engineers

In general, yes, companies overhired many software developers, hoping they will continue hyper growing, but then reality has kicked in - this was not sustainable for most businesses.