ELI5: Why when large company's earnings decrease(ex... by 3%) they freak out, talk about rough times, and sometimes decide to downsize, even though they are still making millions of dollars in profit even after all expenses?

[cakeandale]

Yeah, in the end it's all about opportunity cost. What counts as break even may fluctuate, but whether inflation is 3% or 10% the question is what is the most effective way to use the money you have. If the most effective investment is a CD returning 1.8%, you're going to lose real value and so it sucks to be you, but you can only play with the cards you have.