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downsize

   Also found in: Dictionary/thesaurus, Legal, Acronyms, Encyclopedia, Wikipedia, Hutchinson 0.01 sec.
downsize
To reduce the size of a company, often by eliminating one or more divisions. Management may decide to downsize a firm in order to improve efficiency and to increase the returns to shareholders. Downsizing can cause a firm to grow smaller and more valuable at the same time.


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The Van Nuys-based supplier of aluminum wheels to automakers will downsize its staff by about 375 workers, Superior said in a statement.
Conventional economic reasoning assumes that a firm that is initially at an optimal level of operations at which no change in any parameter would yield a higher profit-per-share, may need to downsize its operations to another optimum level if it experiences a "market shock.
As plans to downsize were revealed and unfolded, employees reacted to the possible loss of their own job, changing coworker relations, organizational support programs, leadership, and the impact work changes had on their lives at home.
 
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