This would be like saying cloud spend was circular because F1000 tech companies represent the majority of cloud spend from a revenue perspective, but tend to sell or partner with those same organizations. For example, AWS and Zscaler, or GCP and Broadcom.
Reality is, a lot of product lines were formed or overhired with little-to-no business justification during the late 2010s and early 2020s. Most of us are now cleaning shop and axing those product lines and features that cannot be attached to tangible revenue generation. Inevitably this leads to ICs getting axed.
If you want to blame someone, blame EMs, PMs, Principal SWEs, and VPs who decided to launch product lines and features for their resume instead of for business justification. (Edit: that said, BeFlatXIII is right that we probably won't have hired most people if this didn't happen at all)
Additionally, comp expectations just got too high - most new grads are not worth $150k-200k TC (some absolutely are though)