This paper investigates the determinants and consequences of firms’ decisions to disclose press releases to announce downsizing operations. We also examine the content of press releases and its influence on investor reactions to downsizing announcements. Considering downsizing operations as negative CSR events, we assume that managers use disclosure strategies to counter a potential legitimacy threat. Our sample consists of 227 downsizing operations announced between 2007 and 2012. We find that the disclosure of press releases is mainly driven by legitimacy-related factors. We also find that press releases are associated with more negative reactions than when there is no press release, particularly in the case of proactive operations. A content analysis of press releases indicates that investors penalize the use of proactive arguments, particularly when they are used to justify proactive operations. Overall, our results show that disclosure strategies and their consequences on the financial markets relate to a legitimacy perspective.