Honestly I think a lot of companies have been grossly overhiring engineers, even well before generative AI; I think a lot of companies cannot actually justify having engineering teams as large as they do, but they have to have all these engineers because OtherBigCo has a lot of engineers and if they have all of them then it must be important.

Intentionally or not, generative AI might be an excuse to cut staff down to something that's actually more sustainable for the company.