I'm sorry but I don't think you know much about business... one of the first things you learn is about stocking, and having too much stock is often worse than having too little. Think of it this way; if you have 100 items and all 100 sell, you definitely made a profit. If you have 300 items, but only 100 sell, then you may not have made as much profit (if at all) and you are now stuck with 200 dead stock, meaning you have to either reduce price to get rid of it or hold on to it making a loss every day that it is in the warehouse or on the shelf not selling.
They are making a great business decision by reducing production, even if to us, the consumers it may not appear to be the best, I think in the long run it is a good strategy.