It's K shaped, like the economy.

Not sure why you are being downvoted. This is my experience as well. If you have experience at FAANG doing “foundational work” (read: datacenter engineering, core software infrastructure, multi zone computing, point of presence management) you are still in high demand. Many of the people I know in such areas are going to the big hyperscalers to build the infrastructure to run AI inference. There are not a lot of people who have experience doing this stuff and that domain is in very high demand.