Reducing outer leaves outer leaves allows light to reach inner parts of densely ramified trees. That is supposed to help inner shoots develop and grow therefore keeping and promoting better branch structure. Some growers remove every second leaf, others cut all outer leaves in half, some selectively defoliate all outer ends but leave inner foliage intact.
Defoliating can sometimes stimulate shoots to grow from the dormant buds at the base of each leaf stalk. This works best when all foliage is removed as leaving outer and upper foliage can suppress new buds below.
My guess is that the grower you watched was using one or both of the concepts above. The trouble with many of these online posts is that we rarely see the results to determine if the techniques worked as intended.
Cutting part leaves does not seem to hurt either leaf or tree but it does reduce the amount of shade the leaves cause and allows air and sun to reach inner branches. It also reduces the amount of energy the tree can harvest from sunlight and therefore the food it can convert so that's one way to slow growth, reduce internode length, etc when we are trying to develop more compact ramification. Leaf cutting is just one possible technique in the bonsai tool box. There are other ways to achieve similar outcomes.