1) Rapid rise in interest rates .. affects funding available to startups as well as makes corporate R&D more expensive relative to the payoff
2) Overhiring during covid likely led to a degradation in standards and a pile up of warm bodies at the largest firms (I say likely because I don't think my org was able to hire on net. We kept getting outbid for candidates and lost people to attrition). Even if this is a perception in the leadership and not a reality, it will lead to a cull.
3) Consumer demand for consumer electronics, computer gear and generally Internet services has fallen compared to the covid bubble. A lot of weird things were going on with respect to both increase demand and constrain supply back in those days. Whiplash effect in supply chains is being studied by academics today.
4) Changes in the US tax code for how software dev costs are attributed. I don't fully understand this but seems pretty plausible.
5) I think the leaders don't see how AI can make them money yet ... the obvious thing is it can reduce costs by trying out AI in their processes. This is all very expensive so perhaps the layoffs creates room for investments in the that direction.
All of these are significant headwinds. Am I missing any?