What is the meaning of the word euphemisms in this sentence?

The manager liked to use euphemisms like saying she was "downsizing" rather than "firing."

1. milder terms for blunt statements

2. simpler words for complex ideas

3. words that replace a less familiar one

4. terms that create a positive mood

The answer to the question above is "milder terms for blunt statements" which is the meaning of the word euphemisms in the sentence above. The manager used the euphemism to decrease the negative tone of the word. However, the euphemism did not change the meaning of the word and its tone to become positive.