That's what Amazon is doing. They simply increase the output norm and promise mass layoffs again. MS promises too, I'm not sure about details, but likely they don't cut the projects. Which means use of some sort of copilot is expected now.
The question is what happens to developers. Will they quit the industry or move to smaller companies?
What happened it that it because the new norm, and the window were you could charge the work of 50 people for a team of 5 was short. Some teams cut the prices to gain marketshare and we were back to usual revenue per employee. At some point nobody thought of a CRUD app with a web UI as a big project.
It's probably what will happen here (if AI does gives the same productivity boost as langages with memory management and web frameworks): soon your company with a small team of friends will not be seen by anyone as equivalent to 100 or 1000 people, even if you can achieve the same thing of a company that size a few years earlier.