“Rightsizing” Is a Myth

Let’s talk about the truth

Photo by James Yarema on Unsplash

Every now and then, corporate a-holes spit out a term so polished and harmless-sounding that it almost feels comforting. “Rightsizing” is one of those terms. It’s a word that seems to whisper, Don’t worry — this is all part of the plan.

But let’s call it what it really is: a euphemism for layoffs.

Companies announce they’re “rightsizing” to align with strategic priorities, enhance efficiency, or optimize operations. What they don’t say is that this often means cutting jobs — sometimes hundreds, sometimes thousands — leaving employees blindsided and morale in shambles.

As leaders, we need to stop hiding behind language like this and start being real with our teams.

Why “rightsizing” is just a glossy cover

The idea behind “rightsizing” is simple: to adjust a company’s workforce so it matches current business needs. In theory, it’s about balance and strategic alignment. In practice, it’s often a cover for slashing jobs to appease shareholders or adjust to a bad quarter.

Look at Alphabet, Google’s parent company. Earlier this year, it announced 12,000 layoffs, citing the need to “align workforce with priorities.” Meta and Amazon made similar moves, cutting tens of thousands of jobs in what was framed as strategic restructuring​​. While these explanations might make sense in boardrooms, they sound hollow to the employees who are suddenly unemployed.

Most “rightsizing” initiatives aren’t about strategy. They’re about quick cost-cutting. And when leaders use vague, sanitized terms to describe layoffs, they create confusion, mistrust, and resentment among their teams.

The fallout of playing word games

Layoffs don’t just impact those who lose their jobs. They leave scars across the entire organization. Employees who stay often feel overwhelmed, undervalued, and anxious about their own futures. Productivity suffers, absenteeism spikes, and trust in leadership evaporates​​.

There’s also the financial toll. Contrary to popular belief, layoffs don’t always save money in the long run. Companies often end up spending more on recruitment, training, and lost institutional knowledge.

Add in the costs of lower morale and engagement, and what initially looked like a cost-saving measure can turn into a costly mistake​.

The language we use matters.

Calling mass layoffs “rightsizing” doesn’t soften the blow.

It amplifies the damage.

It sends a message that leadership is more focused on PR than on the real impact these decisions have on people’s lives.

What honest leadership looks like

What’s the alternative?

Honesty.

If layoffs are necessary — and sometimes they are — leaders need to be upfront about it. Explain the decision clearly. Treat affected employees with dignity by offering fair severance, outplacement services, and support.

Take a page from companies that have handled layoffs with integrity. In one example shared by Psychology Today, a manufacturing firm offered transparent communication, severance packages, and even hosted job fairs for affected employees. They didn’t hide behind euphemisms. They faced the situation head-on, and their transparency preserved trust among remaining employees​.

Transparency isn’t just about being truthful. It’s about showing respect. Employees can handle hard truths when delivered with empathy and clarity.

What they can’t handle is feeling misled or dehumanized by corporate doublespeak.

Breaking the cycle

The problem with “rightsizing” isn’t just the language; it’s the reactive culture behind it. Many companies grow too fast, adding layers of staff during boom times without considering the long-term implications. Then, when the market shifts, they panic and resort to layoffs.

It’s a cycle we need to break. Instead of hiring in a frenzy and cutting in a panic, leaders should focus on sustainable workforce planning. Tools like workforce analytics can help anticipate needs and avoid the boom-and-bust cycle that erodes trust and stability​​.

Building a better culture

At the heart of this issue is a question of culture.

Do we want to lead organizations where employees feel like expendable cogs?

Or do we want to grow cultures of trust, respect, and accountability?

When leaders are transparent, employees notice. They may not like every decision, but they’ll respect the honesty.

And when employees trust their leaders, they’re more engaged, more productive, and more committed to the organization’s success.

It’s time we stop using terms like “rightsizing” to hide difficult truths. Let’s choose clarity over spin, empathy over detachment, and trust over damage control.

That’s what real leadership looks like.

References

1. Dwyer, D. (2011). Downsizing, Rightsizing, and Fantasizing. Psychology Today. https://www.psychologytoday.com
2. Diard, A. (2024). Rightsizing: A Guide to Streamlining Your Workforce. PeopleSpheres. https://peoplespheres.com