Elon finished the acquisition of Twitter about a month before ChatGPT was released. Elon immediately fired about half the company. This absolutely shocked the industry and led to countless predictions of imminent technical and business failure.
But what actually happened? Twitter struggled for a month or two. Then it was fine. Most importantly to tech executives: the company continued running reasonably well with roughly half the number of employees.
That blew the minds of C-level tech executives.
That highlighted the fact that companies had hired way too many people during the pandemic. Further, they could make just as much money if they fired a significant percentage of their employees instead.
So, these companies started firing people. Every year since 2022, tech companies laid off a percentage of their workforce for no real reason. Financially, they were doing great before the layoffs. After the layoffs, they look even more profitable. Regardless, the companies still mostly run fine with at most the occasional outage every now and then (I'm looking at you Amazon).
The fact that these companies can blame the layoffs on AI is just an added bonus. These C-level executives love AI and spending money. You need a reason to tell shareholders for spending obscene amounts of money on a technology. The layoffs are the excuse for the AI expenditures, not the other way around.