AI make development more efficient and effective but the classic problem in development is not lack of people but lack of development progress.
If doubt that you can be able to lay off people, you just have to deal with more code to shape and scrutinise.
Take software maintainers as an example. You need more human maintainers to deal with the AI slop of reputation farming, not less.
Sooner or later the AI LLM market will collapse on the financial market but we will continue to need programmers that use AI.
The counter argument would be like C is more easier to code as assembler, so C led to assembler coder layoffs.
And we heard it before, about RAD assisted coding, in fact we only needed more and more developers.