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All the terms like downsizing, Rightsizing, Layoff, workforce reduction are related to "termination from the job". The only difference between these two terms is: Layoff is a temporary suspension of an employee or a group of employee for business reasons. The reasons can be: Cyclic production of a manufacturing firm.

On the other hand Rightsizing OR Downsizing means a permanent termination of single or group of employee in order to cut cost, increase efficiency etc. It is much more broader objectives than just decreasing the number of employee. It is also preferred as a way to revamp declining organization, cutting cost and enhance organizational performance.

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