I think it's a combination of outsourcing (communication technology like Zoom got much better during Covid and companies learned they could hire someone for a remote job anywhere) and correcting all of the over-hiring these companies did during the 2 or 3 years of Covid.

Companies right now are also reducing their budgets due to future economic forecasting. The company I'm working for just had an all hands meeting where they want to fire the 3rd party company working on a current systems launch set to go live in February and have the internal team work on it (nobody on staff has experience with the technology), and still make the deadline.