Why would you ever run a company at this stage so close to the edge that a 10% reduction in payroll makes a meaningful difference to your bottom line even after

Why would you ever run a company at this stage so close to the edge that a 10% reduction in payroll makes a meaningful difference to your bottom line even after adjusting for the immense morale and PR hit? Seems so wildly irresponsible. Did they really fail to plan for such an obviously plausible scenario as what we are experiencing now? Or was the explicit plan always "eh, we'll just throw some people overboard"? Not to mention, what the fuck are you doing if you're not in an obsolete industry but each extra employee is not making you money?