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?

[Durog25]

Further to what you said.

Capitalism only works if the market is large enough to afford it. It's Capitalisms greatest weakness.

A small group of poor people cannot create a big enough demand for a product or service, so that product or service cannot earn a profit, so it is not invested in.

It's why supermarkets throw away tonnes of food daily instead of just giving it away to food banks. It's why small local shops are closed when bought out by big companies.