Call it what you will, just do it right.

Downsizing
RIF's
Layoffs
Right-Sizing
Purge...(have I missed any?)

When making cuts in the company, two things to remember:

1. You can't move fast enough
2. You can't cut deep enough

If you do cut too deep, don't hire back those who were let go...hire better.

'Hiring better' is a business multiplier.