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The master of coin pushed the beads from one side of the abacus to the next in seemingly random patterns, punctuating the process with the occasional low whistle of disbelief. He pushed three beads to the left with an air of finality and grimaced, pushing his ledger across the table towards you. "We can afford to keep a third of what we currently have; the fire in the merchant's quarter will require us to tighten our belts this winter."

The downsize screen allows you to remove portions of your army, including fortifications. You are also able to downsize land by salting the earth to prevent it falling into the hands of the enemy, or by merely retreating to more manageable borders.
To fire units, you must enter the amount of that particular troop type which you want to downsize, and then select their level of training in the pull down boxes. Newly hired troops always start at level 1 ('green' troops) and become progressively more powerful and expensive to maintain as they are trained. Level 5 troops ('elite') are the most powerful and may defeat a 'green' force which outnumbers them, but are also a considerable drain on the kingdom's economy.
The changes made to your income and expenses by downsizing troops will be instantly seen once the orders have been submitted.
To downsize land, simply enter the number of acres you wish to release and hit 'send'. Any changes to your income and expenses due to the downsizing of land will take place over the next few spent turns, as peasants may leave your kingdom and expenses may come down due to better management of the remaining land.