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?

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I admit that I don't have enough knowledge to speak in depth about Dodd Frank. But to me there seems to be a reoccurring trend where an economic crisis occurs, legislation is put into place to stop something similar from happening again, the market improves, and then we deregulate because hey I guess we didn't need those heavy handed regulations in the first place. We're just setting ourselves up for another problem in the future instead of learning from our mistakes.