In our solution, when we publish the image content they are deployed onto image servers in a folder structure. When we unpublish\update the image content then is there a way to delete the left over empty folders using Tridion? Heard it has some house keeping techniques.
I can confirm both @Dylan's & @Bart's answer, it should indeed delete the folder when the last page is unpublished from it.
I have just verified this with the windows service deployer, and would expect the same behavior from the other deployer types.
If you are not seeing the folder delete, double check the permissions of the user the deployer is running as. Also check the deployer log file for any error messages.
n.b. You can run the windows service deployer in command prompt, to see the debugging messages in real-time.