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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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


  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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson


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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Addressing the protesters Vice President of PFUJ and Senior Journalist Saleem Shahid said, on the platform of PFUJ we have been striving to secure the due rights of media workers whether print or electronic media, "Incumbent downsizing and forced dismissal endangering the future of poor media workers therefore we all have to get united to save our jobs.
Early studies of public sector downsizing and similar ideas have been related to cutback management and organizational decline.
Mr Webb said: "Hoping to live off the value of your home could be a downsizing delusion for millions of people.
Three Quarters Expect to Benefit Financially from Downsizing
At The Home Storage, another storage facility in Dubai, Omar Adam said: "There are three categories of people who are coming to us for personal storage - those who are downsizing, those who have lost their jobs and those who just want to declutter their homes.
Downsizing is your chance to have a thorough spring clean and focus on exactly what you want in your new home Set up your utilities as soon as possible check with your estate agent and obtain details of the previous utility providers so you can call them to set up new accounts.
Despite its pervasiveness, the number of academic journal articles devoted to organizational downsizing remains relatively limited and the literature is fragmented (Datta et at., 2010; De Meuse et al., 2011).
Despite the Ultraboost engine running at more than 35bar BMER pre-ignition was rarely a problem during development, Turner said, adding that the limit to extreme downsizing appeared to be boosting technology, not the combustion system itself.
Although a major goal of downsizing is to improve productivity, Bommer and Jalajas (1999) found that less than half of the firms in which jobs were eliminated reported either a short- or long-term improvement in worker productivity.
This study provides a mean to academicians, researchers, and policy makers to understand the influence of downsizing and its extent on survivors' selected attitudes in secondary and tertiary economy sectors of developing countries.
The CEO of Bank of America Corp (NYSE: BAC) has said that the bank has completed downsizing its investment bank.