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

That raised concerns about layoffs in an industry that has sustained significant downsizing in recent years as viewers and advertisers migrate to streaming options and social media platforms like TikTok.

From Los Angeles Times • Apr. 7, 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

There will also probably be some one-off costs on employees’ downsizing to optimize synergies post-merger around 1Q 2026, according to management.

From The Wall Street Journal • Feb. 20, 2026

He added that others are "downsizing and conserving capital to extend their runway".

From Barron's • Feb. 15, 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