[header] How to downsize your company [title] Consider the ethics of downsizing. [step] In some cases, a company has absolutely no choice but to downsize, or it may fail entirely. In these instances, downsizing is ethical, though it may still create negative feelings within the company. 
In other cases, a company's workforce may have to be readjusted so as to create a more efficient and product company. Before you downsize, you should take time to consider whether letting go of employees is the right thing to do.