Rightsizing is the process of a company restructuring or reorganizing itself by reducing its workforce, cost-cutting, or rearranging its upper management. The aim is to streamline the business so that it can make a profit more effectively. Technically, the term means adapting the company to market conditions, which in theory could also mean increasing the workforce.
In IT (information technology), the term refers to the process of reorganizing or restructuring an organization’s network, IT infrastructure, data center, storage, hardware or other components in an attempt to get the maximum value from those services.
In today’s fast-changing business environment, the ability to adapt and respond rapidly is crucial for survival. Cutting staff numbers has become much more common in the world of business since the 1980s.