It's about whole industries/sectors getting destroyed by a single company. 'Overhiring' is a result of changed business situations. Companies don't overhire hundreds and thousands of people intentionally to let them go. They hired to fill a need. Market conditions changed, competition changed.
Entry level hiring is mostly destroyed mainly because of Anthropic's messaging. Other labs don't push that hard on every vertical because they created a skill with some .md files - and pretend is a highly skilled AI.
I'm not against Anthropic doing it, I'm just saying what they're doing at the moment. Given enough time, Anthropic will be coming after every job that can be done by a computer - including yours and mine.