I think this is not too far wrong. I also think in addition that the really competitive job market of the last 2 years and the hiring they were doing inevitably resulted in some highly paid people who were not good fits or good at their jobs. I think that covid wage hikes and job competitiveness is doing a bit of reckoning now as there is finally enough data to evaluate performance relative to output.

OTOH, at non tech companies, all the research interviews and surveys I have done recently continue to show a talent shortage and fears of losing tech staff, so maybe it is just that Tech companies are saturated and have too much capital for their creativity.