Abstract: Workforce downsizing has becomes a popular strategy done by management to reduce cost and increase profit. But on the other side, it effects on the workforce. Through the quantitative research, the current study examines the effects of downsizing on job satisfaction of existing employees in banking sector of Pakistan. The sample of the current study is drawn from the banking sector of Pakistan and the data is gathered through questionnaires from the sample size of 80 employees. The data is analyzed by applying one sample t-test to identify the relationship between downsizing and job satisfaction of employees and the questionnaire reliability analyzed by applying Cronbach’s alpha reliability in IBM SPSS version 19. The study used 5% significance level.