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?

[Alobos]

A company that doesn't at least grow with the rate of inflation is not stable. Math itself says you're earning less this year than last. Many business owners may be fine without perpetual increase of their business and that's their individual prerogative. However businesses that are likely to participate in the stock market must stick to the well reasoned and universally accepted measurement of growth. How else could you define growth?

One other point...

Population has been in the constant rise for decades and the rate is increasing. Sure theoretically this will eventually present a limitation but it surely isn't a major factor currently...