Meanwhile companies are having record profits. What gives?

That's the whole point of the changes - we've switched from "spend current money to grow company size and earn more money tomorrow" mode to "that tomorrow has arrived, extract profits now by reducing expenses and keeping headcount low" mode.

Companies are having record profits because they're reducing hiring and having layoffs.

>Meanwhile companies are having record profits.

Profits are measured in nominal terms, we've had the highest inflation in 40 years, and employees wages lag. Bigger revenue numbers, smaller costs means more profits.

Only a small fraction of start-up scene is ever profitable. That gives.

Most people aren't applying to startups.