> If I had fewer orders, I would work more to increase the quality of my product and my efficiency. Working less as a reaction to losing market share seems completely counterproductive to me.

That may work if you are a sole proprietor or small business person, but that's not how shareholder owned corporations work.

A sole proprietor is willing to work more if business drops (effectively lowering their compensation rate) because they are the beneficiary of any future gains that may (or may not) result from their short term sacrifice. If they want their employees to do the same they have to give them the same deal.

A large corporation can't easily make its employees work much longer for the same pay (except in the very short term), nor can it easily get shareholders to be OK with increasing spending on labor. This usually ends with massive layoffs when it can't sustain itself anymore.

That's one reason that smaller companies can be more nimble.