For sure it can increase production "if" all the automation is working properly. The other thing is automation/machines do not require wages, benefits or a pension. Even if automation did not increase production it will increase profit especially if the retail price remains the same and it usually does.
Unemployed workers buy very little and are a drain on whatever government assistance they are entitled to. There is a cost to the economy and the tax payer and none to the company, only increased profits. I think that is well illustrated in the documentary film Roger and Me
Roger & Me - Wikipedia, the free encyclopedia .
Bob