Definition of the word downsizing

The term "downsizing" originated in the 1970s in the United States. It was initially used in the context of manufacturing and production, referring to the reduction of the size of a product or a process to make it more efficient, smaller, and less expensive to produce. In the 1980s, the term began to be used in the context of corporate restructuring, as companies sought to reduce costs and increase efficiency during times of economic uncertainty. This often involved laying off employees, reducing the size of the workforce, and rationalizing operations to cut costs. The term "downsizing" became synonymous with layoffs and job cuts, with companies using it to describe their efforts to streamline operations and reduce overhead costs. Today, the term is still widely used to describe corporate restructuring, although it has also become associated with broader societal trends, such as the decline of industries and the rise of the gig economy.