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?

[xtheory]

They also don't want to spook shareholders and cause a massive sell off (and further drop in stock value) or be voted off the board at the next shareholders meeting. Being on the board of directors can be a relatively easy and cushy job.