downsizing

Vocabulary Word

Definition

'Downsizing' often refers to a company's strategy to make its operational structure smaller by reducing the overall size or scale of its operations. Typically, this means letting go of employees or closing certain business units.

Examples in Different Contexts

In a creative studio, downsizing might mean letting go of some artists. The studio head might say, 'Due to budget cuts, we're downsizing our animation team.'

Practice Scenarios

Business

Scenario:

Given our recent losses, we may be forced to reduce our operational costs and reassess our structure.

Response:

Reducing operational costs sounds like a good move, but downsizing should be our last resort.

Operations

Scenario:

The management anticipates some significant changes to make our operations lean and more responsive to market changes.

Response:

Indeed, we need to be more competitive. If downsizing makes us leaner and more agile, then we must pursue it.