When I say "sounds like hell" I'm not necessarily looking at it from the point of view of what's economical, but rather from the point of view of job satisfaction.
Like: If a decision is made not to automate something, someone is going to have to do that boring repetitive work that could have been automated. The person making that decision not to automate is usually not the same person having to do that work. -- The former will usually be some kind of manager or owner, while the latter will usually be some kind of IC-level engineer or bookkeeper or something like that.
If a decision is made not to build that feature that a lot of customers requested, someone is going to have to explain to customers on a regular basis why they can't have their wish (usually some kind of sales person or customer service representative or something like that).
That's where the sadistic element of the Mordac character comes in.
There's a related problem that is discussed at length in the book "Peopleware" [1]: Often, from a strictly economical standpoint, you might be in a situation where you'd say "quality level x is the quality level that the market is willing to pay for, while any higher quality level is uneconomical". You might then be tempted to ask your employees to dial down the quality level of their work and produce worse work than they're capable of. -- The book argues that this is almost always a bad idea because of the demotivating effect. You'll get lower productivity and won't realize the cost-advantage you were hoping for in your purely economic analysis. Or to put it differently: Dialling up the quality-level in your product from the level you economically need/want to the level your employees are capable of will often pay for itself through increased productivity through increased motivation.
So, if you ask your employees to be 0.1x employees, you will truly get 0.1x employees. But the result won't be that you'll accomplish more with less, but rather that you'll do less and accomplish less due to lesser productivity.
[1] https://a.co/d/38NbxtG