What is the process called when a business reduces the number of workers it employs?

The process of reducing the number of workers a business employs is called downsizing. This typically occurs as a strategy to improve efficiency, cut costs, or respond to changes in market conditions. Downsizing often involves eliminating positions as a way to streamline operations and maintain competitiveness. Businesses may choose to downsize for various reasons, including financial pressures, technological advancements, or shifts in business focus.

In contrast, outsourcing refers to contracting out business functions to external providers, which does not necessarily mean the business is reducing its workforce but rather reallocating tasks. Restructuring can involve changes to the organization that may or may not include workforce reduction, focusing instead on altering the overall structure and operations of the business. Growth, on the other hand, entails expanding a company's operations or workforce, so it is the opposite of downsizing. Therefore, downsizing is the most appropriate term for the process where a business decreases its number of employees.