2 competing theories : Ai Automation Tsunami or Pandemic overhiring reset?!

I've heard 2 competing theories with the current tech job market ( & a lot of corporate jobs ofc ) :

1. Ai Automation Tsunami with a new more advanced agent in the market every single day which is leading to am exponentially high rate of automation

2. The layoffs are part of an equilibrium reset of folks they apparently "overhired" during the pandemic

Would love to know your thoughts.. ( I've even heard a 3rd scarier theory where both is true which I rlly hope is not the case )