Definition of Downsizing:
Downsizing is the permanent reduction of a company's labor force through the elimination of unproductive workers or divisions. Downsizing is a common organizational practice, usually associated with economic downturns and failing businesses. Cutting jobs is the fastest way to cut costs, and downsizing an entire store, branch or division also frees assets for sale during corporate reorganizations.
Computing: Adapting mainframe computer based software to a desktop or personal computer (PC) based architecture, without too many compromises in system integrity, security, and control.
Management: Intentional reduction in the size of a workforce at all staffing levels, to survive a downturn, improve efficiencies, or become a more attractive candidate for acquisition or merger. Used often as a euphemism for indiscriminately firing the employees. See also rationalization.
Make (something) smaller.
Downsizing is not always involuntary. It is also used at other stages of the business cycle to create leaner, more efficient businesses. Eliminating any part of an organizational structure that is not directly adding any value to the final product is a production and management philosophy known as lean enterprise. Downsizing can also be carried out to align the firm's skill and talent with the broader market. For example, a company may pursue downsizing to weed out employees with obsolete skills which may not be useful in its future direction.
Synonyms of Downsizing
Reduce, Cut, Cut down, Decrease, Lessen, Retrench, Trim, Prune, Slim down, Scale down, Salami-slice
How to use Downsizing in a sentence?
- Downsizing is the permanent reduction of a company's labor force by removing unproductive workers or divisions.
- While it is generally implemented during times of stress and a decline in revenues, downsizing can also be used to create leaner and more efficient businesses.
- We were downsizing our company and thought that would help because things had gotten out of control over the last few months.
- Downsizing is not always positive and can have an adverse long-term impact on a company's bottom line.
- The implementation of our new manufacturing equipment, along with the new software programs in place we will be downsizing our annual salary overhead by 35%.
- The company has been in a constant state of downsizing this year, and has laid off over thirty percent of its workforce with threats of further firings on the horizon.
Meaning of Downsizing & Downsizing Definition