I don't think software was ever sold as a high variance career. Start a startup! was sold that way, particularly by PG's early essays, but not not W2 employment. You do W2 because you want low variance, and you either love software or it pays well. Either way, I don't think most people were okay with terrible outcomes. (I don't think getting laid off is terrible, I think it should be an expected possibility. I've found that contracting/freelance has helped reduce my fear of losing my job, since you expect the job to end when you start it, and since you're regularly looking for a new job, you get a sense of how long it takes.)