Is no one getting return offers anymore?

Last summer, I interned at a big tech company. During the recruiting process, the recruiter said there was an opportunity for a return offer based on performance. I got really good performance reviews but did not end up getting an RO, and neither did anyone else in my intern class.

This summer, I'm interning at a SaaS startup, and there are already rumors that there won't be any return offers there either. On top of that, I have friends interning at MAANG companies who said their teams are already saying they aren't giving return offers or are significantly reducing them.

What's going on? Is this just the state of the tech market right now?