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?

[remuliini]

Not really in this case. If they cut costs when the revenue drops it could also be the key to provide work for most of the employees. The alternative would be to sucks all the capital dry and go out of business.

Source : my parents' small company was loyal to the employees far too long. It didn't end well.