[jmalicki]

Also see section 5.4. They use the word liquidity rather than saving - it's not being obtuse, just highly technical vocabulary.

" What happens if firms are liquidity constrained? If firms have some finite amount of liquidity at their disposal, say, because they cannot borrow nor issue equity and have limited past accumulated profits at their disposal, then they no longer maximize the present value of profits in an unconstrained fashion. This distorts firm decisions towards laying workers off, since the current period loss cannot be financed."