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Then came COVID and the economy contracted. As a result the stock market changed to reward profitability. So, excess developers had to go. We are still feeling this.
I do agree that AI is not to blame for this. In fact I will go further and claim that AI is a net negative that make this worse for the employer by ultimately requiring more people who average lower confidence and lower capabilities than without, but I say that with a huge caveat.
The deeper problem is not market effect or panaceas like AI. The deeper problem is poorly qualified workers and hard to identify talent. It’s easy to over hire, and then fire, when everyone generally sucks and doesn’t matter. If the average employed developer is excellent at what they deliver these people would be easy to identify and tough to fire like engineers, doctors, and lawyers. If the typical developer is excellent at what they do AI would be a complete net negative.
AI and these market shifts thus hide a lower level problem nobody wants to solve: qualification.
If people can't identify qualified professionals without relying on credentials, they probably aren't qualified to be hiring managers.
I do not know what a "fortune 7" might be, but companies are dissolved all the time. Thousands per year, just administratively.
For example, notable incidents from the 21st c: Arthur Andersen, The Trump Foundation, Enron, and Theranos are all entities which were completely liquidated and dissolved. They no longer meaningfully exist to transact business. They are dead, and definitely 100% not immortal.