This is exactly the case in my industry. My company's revenues are up and our overhead is down because we're getting more work done with fewer people. I attribute it almost entirely to the overhead expenses associated with employees that have no relation to their productivity. Two employees who each have a $15,000 family medical plan, for example, bring an additional $30,000 in overhead costs to the bottom line in addition to the other expenses such as payroll taxes, unemployment insurance, etc.
If you have a labor budget of $400,000 in your business, the best business model is one that includes having 3 people do the work of 4 -- and paying them each $133,000 instead of paying 4 people $100,000 apiece. That way you save $15,000 in medical insurance costs for the fourth employee, plus the remaining three earn $30,000+ that is above the Social Security cap and therefore not subject to FICA withholding for the employee or the employer.
It sounds like the Obama administration really should have gotten a lesson in fixed costs vs. variable costs before they began running this economy into the ground.
You cannot teach the ignorant to use common sense