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Over 5,000 games industry workers have already lost their jobs in 2024
(www.videogameschronicle.com)
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all because higher ups gave themselves too many millions in bonuses and didn't care to do their jobs properly
It's more due to AI and/or the expectation of automation being able to reduce the workforce before that actually gets set up functionally. Also that tech companies are doing it to try and kick back against people demanding their wages increase with cost of living, so game devs are piling onboard with layoffs for the same reason.
The layoff wave started way before the AI hype. It is more tied to interest rates imo.