There's a very long history of extremely effective labor saving tools in software.
Writing in C rather than Assembly, especially for more than 1 platform.
Standard libraries. Unix itself. More recently, developing games in Unity or Unreal instead of rolling your own engine.
And what happened when any of these tools come on the scene is that there is a mad gold rush to develop products that weren't feasible before. Not layoffs, not "we don't need to hire junior developers any more".
Rank and file vibe coders seem to perceive Claude Code (for some reason, mostly just Claude Code) as something akin to the advantage of using C rather than Assembly. They are legit excited to code new things they couldn't code before.
Boiling the rivers to give them an occasional morale boost with "You are absolutely right!" is completely fucked up and I dread the day I'll have to deal with AI-contaminated codebases, but apart from that, they have something positive going for them, at least in this brief moment. They seem to be sincerely enthusiastic. I almost don't want to shit on their parade.
The AI enthusiast bigwigs on the other hand, are firing people, closing projects, talking about not hiring juniors any more, and got the media to report on it as AI layoffs. They just gleefully go on about how being 30% more productive means they can fire a bunch of people.
The standard answer is that they hate having employees. But they always hated having employees. And there were always labor saving technologies.
So I have a thesis here, or a synthesis perhaps.
The bigwigs who tout AI (while acknowledging that it needs humans for now) don't see AI as ultimately useful, in the way in which C compiler was useful. Even if its useful in some context, they still don't. They don't believe it can be useful. They see it as more powerfully useless. Each new version is meant to be a bit more like AM or (clearly AM-inspired, but more familiar) GLaDOS, that will get rid of all the employees once and for all.
I think you're severely overestimating how much the bigwigs even think about this. You're assuming they have some connection to what these tools do and how employees use them, or even that they understand what is entailed in the work their employees do.
It's shiny, "everyone" says you can just fire 30% of your workforce if you "go AI", so you tell one of your subordinates to "go AI" and the HR to reduce the workforce by 30%, and then go golfing. Maybe think to yourself how much time you saved at having those two emails get autogenerated instead of having to vomit your usual word salad about "synergy" and "opportunity", and "digital transformation" or whatever.