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

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

From The Wall Street Journal • Mar. 30, 2026

The majority of their buyers are purchasing move-up homes or downsizing, he said.

From Barron's • Feb. 18, 2026

The job cuts and restructuring add to the workforce reductions that started last October, when the firm announced its first major downsizing in a decade.

From BBC • Feb. 9, 2026

“I’m even downsizing my bed so that you can fit yours in. We picked one out today.”

From "Saints and Misfits" by S.K. Ali