“which means that instead of requiring 5 Senior or Staff you will only need two”
What company ever feels they have “enough” engineers? There’s always a massive backlog of work to do. So unless you are just maintaining some frozen legacy system, why would you cut your team size down rather than doubling or tripling your output for the same cost? Especially considering all your competitors have a similar productivity boost available. If your reaction is to cut the team rather than make your product better at a much faster rate (or build more products), you will likely be outcompeted by others willing to make that investment.
What company ever feels they have “enough” engineers? There’s always a massive backlog of work to do. So unless you are just maintaining some frozen legacy system, why would you cut your team size down rather than doubling or tripling your output for the same cost? Especially considering all your competitors have a similar productivity boost available. If your reaction is to cut the team rather than make your product better at a much faster rate (or build more products), you will likely be outcompeted by others willing to make that investment.