Hood prefers to call downsizing "rightsizing"; by trimming surplus workers, a company improves its ability to reinvest in new products, ultimately creating more prosperity and employment.

Downsizing became popular a few years ago to replace layoffs, but then people started thinking downsizing was too negative, he says. From that, 'rightsizing'' was born.

'Downsizing' is the term commonly used to describe strategic corporate cutbacks. But Roy S. Roberts, vice president of personnel administration for General Motors Corp., prefers a different word. He terms the monstrous task of trimming GM's salaried staff by 25% 'rightsizing,' contending that it will make the automaker leaner, meaner, and more competitive.