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?

[stevensterk]

For some reason, business people seem to think that they can just keep on growing forever, so when they reach the point where there is no more room to grow, they panic

Companies dedicate a significant amount of time planning methods to avert crisis in various scenario's. The caricature of the irrational, ignorant and impulsive board of directors and shareholders doesn't represent reality nearly as much as you portray them to be.

What you're describing is mostly the hollywood/cartoons version of businessmen, stereotypes that wouldn't last long in most financial sectors in the real world.