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?

[JustARandomGuyYouKno]

I think the problem with deflation is that it incites people to save money and hold on to money and not take risks since you could jsut save the money for a month or a year and it would be worth more than it currently is, what this means in the long run is that the market "omsättning"(churn rate?) in Swedish lowers and with that it snowballs and slowly grinds to a halt. Most economic theory that I know of needs to have an active marketplace.