Downsizing refers to the process of reducing the size or scale of a company, organization, or workforce in order to improve efficiency and cut costs. This can involve a variety of measures, such as laying off employees, selling off assets, or restructuring operations. The goal of downsizing is typically to streamline operations and increase profitability, but it can also have negative effects on employees and the overall morale of the company. Downsizing is often seen as a last resort for struggling businesses, but it can also be a strategic move for companies looking to adapt to changing market conditions.