It didn’t, we still have birds. Other than than, there’s some evidence that asteroid didn’t “singlehandedly” caused mass extinction, there was also volcanic activity before, and even more so after the impact (probably caused by it), and rise of extinction before. So, asteroid was more like the last nail in the coffin.
But generally speaking, that impact caused few years of volcanic winter, when Earth’s atmosphere was contaminated with dust and light was partially blocked, therefore plants had hard time surviving. Less plants – less herbivores, less herbivores – less carnivores, less species overall. And less species and animals – less scavengers and detrivores (creatures that eat decaying organic matter). All life is a complex system with many interconnections, so if you remove one chain’s ring – whole chain falls apart, and that affects connected chains too, like a domino.
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