downsize


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Downsize

To reduce the size of a company. A company downsizes when its operations are perceived to become inefficient and it wishes to concentrate on certain competencies in order to improve profitability and reduce expenses. Downsizing often reduces the number of jobs at the company. Because downsizing reduces expenses, it often increases the company's value and/or dividends for shareholders.

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.
References in periodicals archive ?
Corporate Judo: Exploiting the Dark Side of Change when Competitors Merge, Acquire, Downsize, or Restructure.
This is a dummy variable that codes as one when a company downsizes and as zero otherwise.
Hypothesis 2a (H2a): The larger the firm, the less likely it was to downsize.
Firms downsize to improve productivity and reduce costs.
As organizations continue to downsize in the 1990s, managers need to question the wisdom of employing downsizing as a measure to improve profits.
Note: Each hospital used several methods to downsize.
It is apparent that not every company that downsizes its ZS department benefits from the process.
If they don't work, there may be no other choice than to downsize.
Against the background of a company's overall strategy, we go on to consider all the factors that need to be taken into account when deciding whether or not to downsize and when formulating the downsizing plan.
Prepare by looking for general signs that your company may be about to downsize and put all jobs at risk, as well as specific signs that your job may be in jeopardy, whether or not a downsizing is imminent.
Indeed, the lack of effective planning for corporate downsizing is backed up by AMA surveys: Fewer than half the companies that downsize plan to do so a year in advance.
If somebody's goal were to downsize his or her operation by 15 or 20 percent, we could look at the other indicators to make sure the unit is moving in that direction.