'Downsizing' means moving from a larger place into a smaller one. It can refer to a physical space, like a large house to a condo, or it can refer to what a company or organization can do. In the case of the latter, downsizing is actually a euphemism for getting fired.
Examples:
-What prompted your move?
-Now that the kids are out of college, it was time to downsize. We just didn't need that much space anymore.
-So, I heard your department is downsizing.
-Yeah, 10 people are being let go.
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