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

"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

An internal document in November listed Beyda as leading five of 16 new strategic initiatives, including updating the CDC’s agencywide response to outbreaks and crises, downsizing animal research and enhancing surveillance of novel pathogens.

From The Wall Street Journal • Mar. 2, 2026

For others, downsizing or renting could offer greater flexibility and lower ongoing expenses.

From MarketWatch • Feb. 18, 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