downsizing

American  

[doun-sahy-zing] / ˈdaʊnˌsaɪ zɪŋ /

noun

1. the act or process of reducing the number of something, such as employees or participants, usually as a cost-cutting measure.

   The company’s downsizing eliminated approximately 39% of all executive positions.

2. the act or process of replacing something larger with something smaller, such as moving into a smaller house.

   With the housing market in shambles, it would be difficult to sell our house, so downsizing is not really an option right now.

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Etymology

Origin of downsizing

downsiz(e) ( def. ) + -ing ¹ ( def. )

Explanation

In business, downsizing means saving money by laying off workers. Although downsizing can sometimes make a company more profitable, it also results in people losing their jobs. Downsizing is a way to make something smaller, and in the 1980s the business world started using this word to refer to the process of reducing a company's size by firing employees. Earlier, it was used by U.S. automakers to mean "producing smaller cars." And today it also means "moving into a smaller house," something people commonly do after their kids grow up and leave home: "My grandparents are downsizing — they sold their house and bought a condo."

Example Sentences

It also means considering alternatives before making a final commitment — downsizing, relocating, or moving into a retirement community — as part of a broader strategy that offers lower or more predictable costs.

From MarketWatch • Apr. 15, 2026

CVS over the past few years has undergone a significant downsizing of its footprint.

From The Wall Street Journal • Mar. 30, 2026

"For a media house that has spent years downsizing and restructuring, that promise of capital and intent carries real weight," Keith Mwau, an economist, told the BBC.

From BBC • Mar. 13, 2026

Galleries are also closing and downsizing, and films that don’t oblige the content farm aren’t solicited as readily as influencer-helmed or easily digestible projects that can be played as background noise for scrolling.

From Los Angeles Times • Mar. 4, 2026

“Times are much, much harder with all the downsizing, but we’re still a wonderful country.”

From "Class Matters" by The New York Times