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You don't say whether or not you are the victim of downsizing, or if you will be expected to participate in downsizing in a management position at the new job. Generally, the cover letter is NOT the place to discuss specifics of the job. The cover letter is basically designed to get the potential employer to read your resume. You can tailor your resume to discuss the downsizing issue from either perspective.

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Q: How do you discuss downsizing in a cover letter?
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