Today, downsizing has been considered as one of the strategic solutions for reducing costs and improving organizational efficiency. In the oil industry, and especially in Iranian refineries, this approach faces multifaceted complexities that have not only economic consequences, but also significant psychological, social, and structural effects on employees and the organization. The present study was conducted with the aim of providing a comprehensive picture of the factors affecting downsizing, its implementation requirements, and its consequences in Iranian refineries. First, by reviewing theoretical literature and field documentation, the key dimensions and components of downsizing and downsizing were identified. Then, a mixed approach was used to collect data (library studies and semi-structured interviews with industry experts). The findings show that factors such as economic pressures, inefficient administrative structures, lack of transparency in information, and lack of psychological and financial support play a significant role in exacerbating the negative consequences of downsizing. Also, providing a systematic process for implementing downsizing - including organizational needs analysis, careful planning, honest communication with employees, and regular performance evaluation - can reduce the adverse consequences of this action and increase organizational productivity. Finally, based on the research results, an operational model for the downsizing process with an emphasis on human, managerial, and legal dimensions has been presented, which helps refineries and other government organizations make efficient decisions and reduce the psychosocial effects of downsizing.