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downsize (v.)

"reduce the size of," 1986 in reference to companies shedding jobs; earlier (1975) in reference to U.S. automakers building smaller cars and trucks (supposedly a coinage at General Motors), from down (adv.) + size (v.). Related: Downsized; downsizing.

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Definitions of downsize from WordNet

downsize (v.)
dismiss from work;
three secretaries were downsized during the financial crisis
downsize (v.)
design or manufacture in a smaller size;
the car makers downsized the SUVs when fuel became very expensive
downsize (v.)
(of a company) reduce in size or number of employees;
the company downsized its research staff
From wordnet.princeton.edu