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 ?
Thus, the explanation of the behavior of those organizations that downsize lies in theft imitation of the behavior of the leading companies in their sector.
A conceptual framework for analyzing why organizations downsize.
Managers have to be aware of the reasons that lead them to downsize.
In this study, the wealth effects, if any, are to be examined by investigating the long term stock price performance of firms that downsize.
Market reaction of firms which downsize could possibly be just an unbiased reaction.
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.
Companies should be prepared for acts of vandalism, malicious mischief and industrial sabotage following a decision to downsize.