It is part of the regular economic cycle. Most companies try to do more with less, like in any downturn. This cycle is different, as senior management now has AI to justify hiring fewer knowledge workers. Things will turn around eventually when the AI bubble bursts. Companies will then scramble for graduates who have likely moved to work in different industries and complain about a talent shortage.
> senior management now has AI to justify hiring fewer knowledge workers
Justify to whom? Shareholders just care about metrics like earnings and revenue. If they don't need workers to optimize this metrics, they have right to hire fewer workers.
The number of employees you hire is seen as a proxy for growth and future earnings and revenue. With AI the argument is that you can grow with less staff.
