What is the difference between downsizing and retrenchment?

Rightsizing is a more applicable term for optimizing employee numbers and positions to make a company more efficient and profitable. It could even describe when a company increases the total number of employees, contrary to common belief.

Downsizing generally involves reducing the total number of people employed in an organization in an attempt to make the business more efficient and profitable, although that is not necessarily the result.

Rightsizing is a better definition for the company's goals for optimum employment characteristics, and is more politically correct. A company could downsize and still reduce profitability through employment choices.