The money goes to the owner of the business who invested in that machine, to the engineers who spent their time designing and building it and to the shareholders in the form of profits. Alternatively this allows a lower cost of product in which case it goes nowhere, except not out of the consumers pocket. This is why in real terms the cost products can fall.
The profit in developing, buying, and maintaining these machines is factored in to the 4 Luddite cost of the machine in this example. Let's also recognize that this remaining Luddite doesn't have the skills of the previous 10, and is probably only being paid at a fraction of the rate.
It is better to live rich than to die rich. -- Samuel Johnson