verb, -sized, -siz⋅ing, adjective | 1. | to design or manufacture a smaller version or type of: The automotive industry downsized its cars for improved fuel economy. |
| 2. | to reduce in number; cut back. |
| 3. | Also, downsized. being of a smaller size or version: a downsize car. |
To reduce in number, especially personnel: “The company decided to downsize half the workers in the aircraft division.” It can also be used in reference to objects: “I decided to downsize my wardrobe and threw out all my old T-shirts.”
Note: Downsize is a recent euphemism for “fire, lay off.” Company managers often use this term in an attempt to soften the blow of wide-scale layoffs.
Downsize
Reducing the size of a company by eliminating workers and/or divisions within the company.
Investopedia Commentary
When a company downsizes, it is attempting to find ways to improve efficiency and increase profitability.
It is sometimes referred to as trimming the fat.
See also: Horizontal Integration, Rationalization, Reorganization, Restructuring, Vertical Integration
downsize