In top rated healthy companies the employer follow a regular practice of firing employees who are not responsible and shows negligent to their commitments. But downsizing a company is completely a different concept. This is actually done to reduce the particular company's human strength or work force and it is not actually depends on the employee's performance. Downsizing is indeed a tough decision and is done when the company finds that some staffs no longer hold values for the company. It is from every angle a tough decision for the managers who are given the responsibility to deliver the bad news. So it becomes the responsibility of the concerned HR to motivate the existing employees in the tough situation and at the same time it’s very hard for those who lose their jobs after serving the Company for a long period of time. Although downsizing is not easy decision but ethical behavior towards the employees who are losing their jobs makes the whole procedure a bit easy.