The older ones amongst us saw this around 2001 when the dot-com bubble burst and there were massive layoffs in tech (Macromedia let go around a quarter of their IT folks in a single day -- I certainly remember that day!).
In reality, what was really happening was a "reset" to normality: IT had become a white-hot industry with ridiculous amounts of money being thrown at it, and companies hiring like crazy (signing bonuses were often $20k or even a new BMW 3 Series... I'm looking at you, Palm!). Everything went back to pre-bubble levels for a while. Sanity in the industry was (somewhat) restored.
This latest contraction is very similar: many tech companies -- especially the larger one -- have been massively over-hiring because they had money to burn, and then the money stream goes back to "normal" and the companies simply dump their surplus staff in response.
This is why I hate the whole VC ecosystem and "Big Tech" in general: it all seems great when things are expanding, but it's out of touch with economic reality, and then everything contracts again. It does not make for a very stable industry.
Years ago (OK, decades ago), before all this "ooh shiny" VC nonsense, you could join a tech-heavy company and have an entire career there if you wanted. I have friends who worked at places like IBM and HP for literally decades. The industry used to be really stable.
Remember also that (big) tech companies colluded on salaries and non-compete agreements after the dot-com bubble burst -- I was part of a class action settlement against Macromedia/Adobe and many others in the Bay Area, and received several thousand dollars in compensation once the suit was handled. It's not exactly a healthy employment industry...