Without understanding the proper context, this is meaningless.
AI has helped make programmers more efficient which has reduced the need for entry level/junior devs.
However, most of the reasoning is that companies vastly over hired during the pandemic and the days of free money but once it was over, they realized that many of the developers they hired literally were doing nothing and they started cutting positions and getting rid of projects that were not profitable or didn't really fit with the direction they were pivoting post-pandemic.
Software development jobs for quality engineers are not going anywhere anytime soon. Anyone who says otherwise is living in Fantasyland.