I'd put it differently - programmers of all levels tried to get into companies where their work is a "profit center", where product of engineers adds to profitability. And not a "cost center", where company sells something else, but spends some of their profits on IT. Latter positions usually associated with a lot of horror stories and uphill battles. Naturally one would avoid them if they can.

So, when outlook is not so great and even profit centers started to cut their OpEx-es too - there is a surplus of engineers on a market and higher competition over positions that are left in profit centers (and those are compensated less). But I don't believe cost center companies actually gave up on IT, they may found different ways to close the need, but they still have some form of IT, either in-house or outsourced/off-the-shelf products.

But it's indeed of humbling moment in time for some engineers, to realize that they were in very very premium position compared to many. And got used to it too much - why build networks and stay in touch, when one receives 10 inbounds from recruiters a day, why keep skills up to date and stay sharp when the moment you're on a market - there is a queue to snatch you off the market, why part your ways on good terms instead of burning the bridges, when there seems unlimited offerings in front of you, so you never want to look behind...

Well, now we know why - to get through the "thin", until next "thick".