Modern information networking technology, if used correctly, can make a 50 person company look like 500. It also works in reverse, you can take a 500 person company and pare it down substantially (although usually not all the way down to the level of a company organized from scratch around automated processes).
I would go even further, in order to gain any meaningful return on the technology investment, you HAVE to radically reduce head count. This isn't merely due to straight forward calculations of profit and productivity (although reason enough by themselves), it's due to the fact that the organization will devolve into a pile of mush if you don't. Simply, with everyone hyper connected/productive the volume of mostly needless interactions will grow exponentially. Soon after the arrival of the technology, the entire organization's decision making capacity will be lost in discussions and white noise -- OODA loops will sputter, spark, and eventually fail. It will also prevent the reorganization necessary for decentralized decision making by super-empowered employees (parallel processing in uncertain environments).
This appears to be exactly what is going on in the US military. While the US military has been investing heavily information networking technology, it hasn't changed its basic organizational structure. Its organizations are still staffed to balloon (via conscription) to fight the large conventional wars of the last century. That means lots and lots of mid to senior level management with nothing to do but generate lots of white noise. To get a glimpse into what this means in practice, please go read Tyler Boudreau's article, "The Internet age comes to the battlefield."