Diminishing returns of the move to downsize: What are the benefits of this strategy?

Many people view the term downsizing as an unpleasant euphemism, especially those who have been victims of an organization’s decision to cut its workforce. To some extent, this is based on the view that downsizing simply means a planned reduction in personnel. A better definition might be a “selective reduction in a firm’s resources”, which has wider implications than merely human resources.