How corporate downsizing effect project management?

It can influence it in two ways:

1. There will be fewer resources available to work on a project. It could be that critical resources (people holding a specific expertise) will not be available anymore and so the team will need to be reorganized.
2. Many time people decide to lose the Project Manager hoping that the tasks will move forward without someone managing the process, maybe shifting responsibilities to other team members (product manager, team leaders etc).