VERB (3)

1. dismiss from work;
- Example: "three secretaries were downsized during the financial crisis"

2. make in a smaller size;
- Example: "the car makers downsized the SUVs when fuel became very expensive"

3. reduce in size or number;
- Example: "the company downsized its research staff"

WordNet (r) 3.0 (2006):

downsize
    v 1: dismiss from work; "three secretaries were downsized during
         the financial crisis"
    2: make in a smaller size; "the car makers downsized the SUVs
       when fuel became very expensive"
    3: reduce in size or number; "the company downsized its research
       staff"