What does downsizing typically involve?

Downsizing typically involves merging multiple divisions or closing unprofitable ones in order to streamline operations and reduce costs. This process is often adopted by organizations when facing financial difficulties, aiming to improve efficiency and profitability by eliminating redundant roles and focusing on core business areas. By merging divisions, a company can consolidate resources and minimize overhead costs, thus enhancing its competitiveness. This strategic action helps the organization to adapt to changing market conditions and can ultimately lead to a more sustainable structure, especially in times of economic hardship. The other options center around growth strategies and expansion, which do not align with the fundamental goal of downsizing.