In the present study, sizing and shape optimizations are performed based on the reduced system of large-scaled problem. In the analysis part to achieve efficiency and reliability of computation, two-level condensation scheme is applied. In the construction of reduced system of large scaled problems, it is much more efficient to use sub-domain method. Thus, in the present paper, two-level reduction method combined with sub-domain method is employed. Once the reduced system is constructed, it is straightforward to obtain design sensitivities from the analysis results of the reduced system We use semi-analytic method to obtain design sensitivities. Performance of the efficiency and reliability of the present reduction method in the structural optimization problem is demonstrated through the numerical examples. The present framework of reduction method should serve as a fast and reliable design tool in analysis and design of large-scaled dynamic problems.