(Yes, I’m a negative asshole. I should probably be more open minded.)
I think you're really under-estimating the positive, human value that can come out of what I'm describing.
If you leave the world of software companies you'll find that a lot of humanity is wasting huge amounts of time on tasks that could be easily be automated. My most recent experience was the Electronic Vehicle research space - I was able to rather straightforwardly reduce testing cycles for certain key components from 1 year to 1 month through some straightforward software and collaboration with some scientists.
Most of what I accomplished could have been achieved by the scientists if they had used something like Retool[0], but Retool is too sophisticated a tool for them to ramp up on. If AI could make Retool accessible to someone with the technical sophistication of Material Scientist who can write a little Python, it might greatly speed up the rate at which we advance EV technology.
The point I'm making is that making it easier to make products that are accessible means that it's easier to distribute the positive effects of innovation to the rest of society faster. If anything, there's the potential to lower profits long term because today creating a product that is both valuable and accessible is an incredible moat.
In a boom cycle, it's not a great use of resources to try to really tighten up the manger/report ratios because the size of the org because the slack lets you grow faster. The higher the growth, the more managers at a more inefficient manager/report ratio generally.
Certain orgs in LinkedIn were growing really fast. Now they're not and they know the headcount for the next year, time to ratchet down the number of managers to get a more steady, cost-efficient ratio.