Downscoping represents a reduction in the number of a firm's employees and sometimes in the number of its operating units, but it may or may not represent a change in the composition of businesses in the corporation's portfolio.

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Downscoping refers to the divestiture, spin-off, or elimination of businesses that are not aligned with the firm's core operations, focusing on reducing diversification, not necessarily reducing employees or operating units.

Downscoping Represents a Reduction in the Number of a Firm's