1. The labourers finish the work in less time and get more leisure time (production and labourers stay constant, time spent decreases)
2. Some of the labourers are fired since fewer are needed to perform the same work in the same amount of time now (time and production stay constant, labourers decrease)
3. The same amount of labourers work the same amount of time, but produce more due to the increased efficiency. (time and labourers stay constant, production increases)
In my experience, unless you work for yourself, outcome 1 will never happen. Outcome 3 is desirable from a broader perspective because that extra production must be benefitting someone. But I don’t see any upside to option 2. Some people lose their jobs and there’s no extra production. I guess you could argue it would have been a waste for them to continue working on something that could be done more efficiently without them, so in the long term it works out, but in the short term they lose.