The tech job market soured after the .com bubble burst as well. That was early 2000s. How many people here remember how bad it was? Unemployed tech workers everywhere. Very few jobs. Many jobs posted requiring 60+ hours, every tech skill that ever existed, offering paltry salaries, and some offering no salary at all (for real; they were listed as opportunities for people to develop or maintain their skills through volunteer work while between jobs).
Many people exited the industry during that period, because it sucked. And then the market shifted, and the tables turned, once again. Suddenly there was huge demand for tech work, and the market was barren because so many people re-skilled and so few kids got degrees in it. For that reason, and only for that reason, conditions improved, hours reduced, salaries rose, and so on.
The same thing souring is happening now due in part to the economic consequence of the high interest rates (which were used to fight inflation). As planned, those caused mass layoffs in the the tech sector and mass reduction in open positions. We are exactly where the federal reserve intended to put us (on its economic strategy to reduce inflation by reducing wealth throughout the working classes, including white-collar).
Of course we also have AI now, and other factors I am not thinking of. That is being hashed-out. But even so, history suggests that the pendulum will swing again. It will take a few years of course, but when it happens there will be soaring demand for highly-skilled tech workers but not for junior level workers (since AI can handle that), and there won't be very many because so many of them retired or exited the industry, so few kids picked it as a major, and nobody could get the necessary experience because all those positions are taken by AI.
Aside: I want to point out that "reducing headcount while making record profits" is standard operating procedure. Young generations always have the naive expectation that a profitable business should be happy to have a high headcount and pay all those workers all that money because they have plenty. Some even consider it something of a moral obligation. Well, that's not how the world works. Headcount is reduced whenever the company feels like it can heap more work on fewer people and still get it done. They LIKE it when all their employees are overworked. They consider that optimal. They push for it whenever they can. AI will not reduce anyone's workload; it will increase everyone's workload because they can do more now by using it, so the company will just cut more people and dump their work on your plate.