This is also why stuff like the lawsuit against GitHub Copilot is extremely counterproductive. If AI enables you to build a full-fledged Google Docs clone in one day, your value in the labor market will go up by a lot, certainly not down.
Edited to add: Every company where layoffs have happened recently were cases where management largely squandered the value of their developers (Stripe, Lyft, pre-Elon Twitter, etc). They had the ability to build 1000x more stuff than they actually did, and are now simply paying the price. Truly innovative companies that use their developers properly will never see layoffs - I can guarantee Replit won't see any layoffs at least for the next four years.