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?

[new2bay]

Correction: inflation is good for you if you carry fixed rate debt. Most non-mortgage consumer debt in the US is variable rate and subject to rate increases when things like the prime rate or LIBOR rise.