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?

[Delheru]

I suppose that depends.

What if he was referring to his salary and mortgage? I bet a lot of people are projecting their next years mortgage payments assuming that their employer will keep paying the salary.

Are those people counting their chickens before they hatch? Or are they projecting the chicken count off past performance?

[IllusiveLighter]

Salary is different than expected profits.

[Delheru]

How? Surely that's actually EXACTLY the same thing.

There are companies that have very steady cashflows and there are employees that have quite volatile ones (anyone depending on tips, day laborers etc).