These layoffs don't happen in a really hot market.
As much as people like to think that developers are just cogs on wheels, companies still want experienced devs (experienced senior and above), and they are still difficult to hire.
Arguably python is so easy that junior devs aren't that far off from senior devs.
Start asking questions about Linux, or networking, or security, you won’t find many that can answer.
People who can actually engineer in python is becoming more and more common place.
If you yourself are a bad engineer or terrible at hiring, you might mistake the chaff for the wheat, but then you're doomed anyway.
I think you're not talking from experience.
The same thing happened with JS when that was peaky, and it'll happen in other languages too.
What is old is new again.
There's still a deficit of talent, even in Python. I don't see anyone denying this reality.
But to your point, there is a flood of bad candidates.
This is indeed what is happening right now.
I really don't worry about this stuff until it starts looking like the dot-com bomb again. I survived that, I'll survive this.