Why does it sound like layoffs? If you keep the team size the same and use the productivity increase to deliver more business value, how is that layoffs?
Thus layoffs, no need to keep as many employees around.
There is no MBA like magical growth, the amount of customers is a physical limitation of inhabitants on planet Earth that are willing to actually use a specific piece of software, regardless of how productive it was made in first place.
If I figure out a way to make my workers produce 10 times more widgets each, it doesn't automatically follow that there is a market for the extra 9 widgets. Otherwise I would have hired 9 extra workers before that invention to fulfill the market demand.
Making the widget cheaper doesn't necessarily create demand either. I will not buy 10 times more toothbrushes or writing pens if their prices suddenly decreased to 1 cent.
The demand for software or features will not increase at the speed of our ability to produce them.
That is the fallacy of all those MBA degrees with exponential growth expectations, they never take into account the physical limitations of goods, like your very good examples.