If business can deliver the same product with a smaller team, great!
And yes this has been happening for a while, even if not everywhere.
In enterprise consulting, projects that would require a team of 20 devs on average, now have about 5.
Moving away from on-prem, managing own cloud infra to managed containers, to serverless, SaaS and iPaaS ready made products, and offshoring naturally.
All contributed to ever decreasing team sizes.
Now AI based tooling is added to that cocktail, reducing even further the team sizes.
The only folks doing well in the end, are the employees of AI companies, without moral issues contributing to the industry downfall, because the CEO themselves aren't the ones coding and pirating human culture.