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Related to downsizing: outsourcing, Rightsizing


A company's reduction in the number of employees, number of bureaucratic levels, and overall size in an attempt to increase efficiency and profitability.


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.


  1. the use of PERSONAL COMPUTERS in a business in place of large mainframe computers. The introduction of smaller, faster and more cost-effective microprocessors has made it possible for tasks which formerly could only be performed by mainframe computers to be carried out at the personal workstation level, allowing a greater devolution of DATA PROCESSING down to the ‘desk top’.
  2. a term for policies aimed at organizational contraction, usually leading to REDUNDANCY for some employees. The oft-stated rationale for downsizing is that a smaller, more flexible ORGANIZATION will be able to respond better to market forces. Cost reduction, however, is probably an equally important motive. See DELAYERING, RIGHTSIZING.


a term used to describe the contraction of a firm's operations to make it ‘leaner and fitter’. The general aim of downsizing is to reduce costs and, by creating a smaller, more flexible organization, make the firm better able to respond quickly to changes in its markets. Downsizing frequently occurs during periods of falling demand or intense competition, and it often involves redundancies or earlier retirements among the workforce. Downsizing may also result from productivity improvements associated with technological changes that enable firms to produce the same or greater outputs with fewer employees.
References in periodicals archive ?
Our study shows that the imitation effect is important to explain companies' adoption of downsizing.
The most common term used to describe this phenomenon is downsizing.
A company that is part of the 1988 S & P 500 will be included, provided they have a downsizing action, regardless of their membership from 1990 to 1992.
Individual's beliefs and understanding of self may affect the way the changes brought about by downsizing are interpreted and subsequently reacted to.
In workplaces where layoffs or downsizing has occurred, managers shouldn't allow turmoil in the external economic environment to distract them from their employees' needs.
The neXt section describes our framework for identifying downsizing industries and presents the particular classification that results from implementing this framework.
By working to squeeze more efficiency out of the RIM program, the organization will be better prepared to respond to economic hardship or downsizing.
A conceptual understanding is required to distinguish downsizing from organizational decline and other related concepts (Gandolfi, 2007).
Downsizing with turbocharging market forecasts from 2016-2026 further subdivided into 10, 8, 6, 4, 3 & 2 and other number of cylinder categories.
Downsizing is a violation of this trust and the organization's responsibility to provide a positive work environment and secure employment (De Meuse et al.
Some 43 per cent of downsizers, for instance, want a smaller property to help reduce utility bills compared to 37 per cent who see downsizing as a way to help support them in their later years.
Brian Moynihan, CEO, said that the bank is largely done with downsizing its investment bank.