Why is it not always in the best interest of companies to cut jobs to save money

Cutting jobs will also cut down production. For example, if a factory was cutting down jobs their production would slow, which would end up not benefitting the company. The factory would then be producing less products and putting less products on the shelf, which would hurt them. They would also be overworking the workers that they keep to make up for the workers that are no longer there. This could make workers unhappy and cause them to either quit or ask for a raise.