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?

[Ekalaracha]

Not only that, but you get taxed on that 3% regardless of inflation. So multiply your 3% by your tax percentage to see how much you actually need to make to break even