It's probably going to be both. If you have 100 people, and you make them 10% more efficient, and demand stays the same, you can just cut costs by 10% by laying off people.
In terms of work, with zero-friction reallocation, of course automation is a good thing. There are tons of other things which need to be done besides packing boxes in a warehouse or driving people around. But we don’t have anything like perfect reallocation, and we don’t have business models for many of the things which need to be done.