> Fewer developers required to achieve the same things means a lot of people are going to be unemployed

I don’t think that's a foregone conclusion. Every company I’ve worked for has had a huge list of tasks we'd do if we had more engineering resources. There's never been a shortage of worthwhile things we could do, it's always been ruthless prioritization to find the 10% of tasks that are the most important.

Look up Jevons' Paradox. This is a thing that has happened a bunch of times before.