The researcher has tried to correlate downsizing and unemployment in the current research paper by taking a case of Steel Authority of India Limited (SAIL). SAIL is one of the large state-owned steel making company and one of the top steel makers in the world. Past ten years data is analyzed to reveal its downsizing pattern. The study shows that SAIL is not following nation friendly policies, particularly in downsizing which may contribute to a problem of super unemployment in the nation. The no. of employees is decreasing every year at a fast rate and this is the high time when government of India must design and implement an appropriate downsizing policy “One India one downsizing policy” to avoid the situation of super unemployment.