We should not be constrained by the false belief that current organizational effectiveness or financial success is a de facto argument against doing what is necessary to ensure continuing success. A healthy profit picture and downsizing are not mutually exclusive. But this is only a partial answer to the question. We have merely said that organizational downsizing is not intrinsically unethical. To answer more fully, we have to look at a number of issues.
Values are how one defines what is right, fair and good.
This definition applies whether we consider individual values, organizational values or societal values. Here we mean choices and the observable, behavioral manifestation of values-based decisions. Under these conditions, any decision under consideration will violate one or more values even as it honors others. Under these circumstances, a choice to take some action will harmonize with the decision-maker's values. Those who remain after the downsizing.