The plus side of all this is that entry level software development jobs are typically pursued by recent college graduates. They are young.

While it sucks to have blown a lot of money and accept they've been duped to get a degree in something that is now "worth" a small fraction of what it once was, time is on their side. There is plenty of time to go back to school, or apprentice, or learn a trade or go to trade school in something else with better long term career prospects.

On the opposite side of this, senior level devs should (hopefully) be on target financially and theoretically should be fine, especially if they make adjustments now (lower COL, layoff preparation, prepare for accelerated retirement timeline).

The folks who are really going to suffer are those early to mid level developers. Not as much of a network, not enough traditional expertise, not enough savings, not as much time to invest and pull the trigger on a career change.