Plenty have answered the horrible practical aspects of upgrades.
And have answered the lack of business sense in upgrading.
But the question also asked what happened to all the money saved on eliminating staff?
Businesses are asking that very same question. They had to pay to train staff to use computer systems. They had to buy new equipment. They had to hire people more trained than ever before, at a higher cost. They replaced filing cabinets with servers, the former requiring little energy, the latter requiring lotsa' energy costs plus specialized (read: expensive) staff to maintain. They were sold this bill of goods on the premise there'd be savings, but they were sold the concept by companies whose goal was to earn money from other companies spending. There are entire new departments dedicated solely to various aspects of this equipment.
Do you know how long the software lasts for a typewriter? Forever.
The problem is your business can't interact with any other without adopting an appropriate level of technology, which spawns requirements for additional tech, and other tech, and next thing you know you have a complete system, which is nothing more than a massive money drain required just to be in business. The real question is how can you stem the tide and cut the bleeding?
The company that reduces costs, lowers operating costs, while still providing an acceptable level of service to clients succeeds long term (assuming good marketing).
So tell me, exactly how will upgrading that newfangled "typewriter" help clients?