This makes sense to me.
Until Software Engineers have automated away all the other jobs with AI & software they'll be safe. That's going to take a long time.
Replacing software engineers with AI only affects the bottom line of software companies. Companies are usually fine with increasing the bottom line if they can exponentially increase the top line. I think software engineers will provide that capability for at least the next 10-15 years.
True, besides actual software engineering is small part of overall IT/computer related work. There are far more analysts, managers(project, program, IT, agile etc), QA, operations and so on. So engineers who employers think are capable of leveraging AI and do 20 s/w engineer worth of work with 5 people will remain in demand for time being.
Even without outright layoffs one can see how fast leverage of average IT engineer is disappearing. After 20 years of experience my value or feedback matters less than when I was 4 years into paid job. And it has far less to with AI so far.
Most custom work of past is just a library, component or framework to use. And those are mandated to be used as it much easier to hire/replace teams to work on those.
Now It may be always be true to have reusable components created but growth of IT industry kept people employed in ever greater numbers. However now it seems to be reaching limit. Leaving aside highly visible layoffs by US tech giants, growth is fading in countries like India with huge IT offshoring workforce. There are millions upon millions jobless fresh graduates waiting to get jobs with some IT degree.
"There are millions upon millions jobless fresh graduates waiting to get jobs with some IT degree".
Quality of those graduates is not always great. A talented and passionate SWE will always make a good living.
I think that's an over-simplistic view - at the moment there are many, many software engineers hired by companies who are betting on AI being madly profitable. If those expectations change, we could see more cascading layoffs, which will mean those engineers will go looking at more traditional places like banks, which means they'll stop hiring, which means it'll be harder to someone who is looking for a new job to find one, even though not all jobs have yet been automated.