"Software engineers don't even need to be around for the programs to keep running."
Can you tell me where you work, and are you hiring???
I've taken money to create software for most of three decades and I don't think I've ever actually worked on software that needed the people who created it to be near it while it was running, once it was working.
I think the record single instance uptime on a customer site was most of a decade, running a TV station.
They don't - not the same way that farms or factories need laborers. Some small fraction of your software workers need to be around to handle the running software and hardware in case of failure. In the context of union bargaining power, the difference is important.
If the factory workers don't show up for work, your factory's output immediately drops to 0%. If none of your software engineers show up, most of your company's code will continue to run, some of it in a degraded state, for a while. (How much depends on your sub-industry, and how much you're outsourcing to AWS). And if you can get 5% of your workers to show up, you might be able to handle 90% of the on-call load.
Didn’t twitter get 3/4 people laid off? Seems to still work as of time of writing (x.com).
People dramatically underestimate (or are outright unaware of) the effect of Elon's takeover of twitter had on the tech industry. Twitter needed to collapse, so everyone would see what firing 80% of the workers would do to a tech company.
That collapse didn't happen.