The process of downsizing has often been considered as a onetime activity that is disconnected from the processes and the outcomes associated with the activity. Since the strategies, organizational, industrial and environmental characteristics play a crucial role in determining the success and/or failure of the downsizing process, a piece-meal approach to the research on downsizing is not enough. This paper thus presents a holistic view of the downsizing process where the dynamics that ensue during the downsizing are elucidated in a framework. This paper further discusses certain implications for practitioners and provides scope for future research for the researchers.