The current rounds of layoffs in the last couple years have noting to do with people not buying washing machines from the washing machine factory... It has to do with the washing machine CEO saying that we have too sell 200% MORE washing machines this year compared to last OR we're going to call that "nobody's buying washing machines".
You're quoting theory while ignoring the failed reality around you.
No washing machine factory has lost any money, they just didn't make as much profit as they hoped for - even then, plenty of them are seeing record profits and still doing layoffs and raising prices to consumers artificially to exploit the pandemic profiteering moment and juice their stock price.