"Fewer people can't do as much work" In most cases that's true. However, it's also a possible and very feasible way to cut away the excesses and keep on-board

"Fewer people can't do as much work" In most cases that's true. However, it's also a possible and very feasible way to cut away the excesses and keep on-board core pieces that can compensate for the losses. For example, a company I used to work for had a massive layoff when the bubble burst in the early 2000s. They learned their lesson and had very gradual employee growth while they still continued on lucrative projects eventually expanding rapidly today.