> If one person can become as productive as two or three, why keep the extra one or two employees? You might think that keeping the head count the same means the company can now do more but that is only true if the company has the bandwidth or market to grow into.

If the extra one or two employees are 2x or 3x as productive as they used to be, why would they not be employed? There will be plenty of market to grow into since the gains in productivity are shared throughout the economy.