When I design a backend system, I need to think about how the front end developers are going to interact with it. My data storage characteristics and scaling. I need to know am I designing anything that’s hard to deploy. How will logging work and be aggregated. I have to be able to think about the entire system.
It’s not just “cost cutting” at a certain point in your career you are expected to know more than just “how to code”. I’m not saying learn AWS. But I would expect any senior developer to know about what their code runs on top of .