downsize

1. To reduce the size of a company, often by closing, selling, or spinning off one or more divisions. Management may decide to downsize a firm in an effort to improve efficiency and to increase the returns to shareholders. Downsizing can cause a firm to grow smaller and more valuable at the same time.
2. To move to smaller accommodations. For example, a couple may downsize, or move to a smaller home, after their children are grown.