The process of reducing the size of a company's workforce, typically through layoffs or elimination of positions, usually to cut costs or improve efficiency. It can also refer to reducing the scale of operations or organizational structure.
Coined in the 1970s in the automotive industry, originally referring to making cars smaller. The corporate meaning emerged in the 1980s during widespread corporate restructuring, euphemistically replacing harsher terms like 'layoffs' or 'firing.'
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