The primary thing going on in the market right now is a lot of companies simply over-hired during the post Covid boom and they’re correcting for that.
I had already been working in tech for decades when the offshoring craze started. It was remarkably similar to the current 'ai craze'. Loads of jobs lost, predictions it was the end of (on-shore) programming, long job searches (and even longer ones for recent grads, etc. All in the name of 'cost reduction'. Thing is, in a couple of years when the savings didn't materialize/live up to expectations, companies started hiring on-shore again (and even paid better!). Now, offshoring is just one more tool. It still exists, it's still used - but it didn't destroy domestic programming market.
Personally, I think AI will follow the same trajectory. Its gonna be rough, but then it won't be the 'magic bullet' management wants, and they'll start hiring again. AI (just like offshoring) will still be there, still be used - it will just be a tool rather then a complete replacement.
Which is why I say, it reminds me very strongly of the current AI trend. AI won't 'go away' - but I don't think it will 'be the end' of programmers (at least not in the next 5-10 years). It will just become another tool
The story that all the US tech jobs disappeared and got replaced by offshore simply isn’t what happened.
There are interest rates going crazy, AI hype, wars going on, visa rules changes, tariffs and trade wars.
Offshoring seems like a silly explanation in current global situation, there probably is some still but I don't believe anyone is risking having employees in Elbonia.