For cost centers, maybe. If your development team or org is a revenue generator with a backlog, I don't see why the team would be trimmed.

I'll go further than you. Even if the team is a cost center, it may not make sense to reduce the headcount if there's still more work to do. After all, an internal team that just assists other teams in the company without directly creating value suddenly become more productive could in turn make the other teams more productive. Automatically reducing headcount after a productivity increase is like that effect where people drive more dangerously when wearing seatbelts.