Downsizing

Downsizing is a euphemism, a term used to avoid the emotional valence associated with other similar and more candid terms, like being fired, laid off, or let go. There have been several waves of downsizing in the United States, and this entry will define, document, and quantify this corporate practice and consider the downsizing process. Corporate motives will be examined and alternatives to downsizing suggested and analyzed.

Downsizing has been defined by Bruce Weinstein as reducing the number of employees for reasons beside suboptimal performance or criminal or unethical conduct. Another definition differs considerably from the first, and it claims that permanence of workforce reduction is the key factor in downsizing.