Let the wire be subjected to a tensile force $F$.
Longitudinal stress = $\frac{F}{A}$, where A is the original cross-sectional area.
Longitudinal strain = $\frac{\Delta L}{L}$, where L is the original length.
Young's modulus is defined as $Y = \frac{\text{Longitudinal stress}}{\text{Longitudinal strain}} = \frac{F/A}{\Delta L/L}$. (Eq. 1)
Poisson's ratio ($\sigma$) is the ratio of lateral strain to longitudinal strain.
$\sigma = -\frac{\text{Lateral strain}}{\text{Longitudinal strain}}$. The negative sign indicates that if length increases, the radius decreases.
Lateral strain is the change in radius divided by the original radius, $\frac{\Delta r}{r}$.
So, $\sigma = - \frac{\Delta r/r}{\Delta L/L}$. (Eq. 2)
The area of cross-section is $A = \pi r^2$. The change in area is $\Delta A$. For small changes, we can use differentials: $dA = 2\pi r dr$.
The fractional change in area is $\frac{dA}{A} = \frac{2\pi r dr}{\pi r^2} = 2\frac{dr}{r}$.
So, $\frac{\Delta A}{A} \approx 2\frac{\Delta r}{r}$. The decrease in area means $\Delta A$ is negative, so let's use magnitudes. Let the decrease be $\Delta A$. Then the change in radius is $\Delta r = -\frac{\Delta A}{2A} \frac{1}{\pi r}$. No, this is getting complicated.
Let's use magnitudes: $\frac{\Delta A}{A} = 2\frac{|\Delta r|}{r}$. So, lateral strain $|\frac{\Delta r}{r}| = \frac{1}{2}\frac{\Delta A}{A}$.
From Eq. 2, in magnitude: Longitudinal strain $\frac{\Delta L}{L} = \frac{\text{Lateral strain}}{\sigma} = \frac{\frac{1}{2}\frac{\Delta A}{A}}{\sigma} = \frac{\Delta A}{2A\sigma}$.
From Eq. 1, the required force is $F = Y \cdot A \cdot (\frac{\Delta L}{L})$.
Substitute the expression for longitudinal strain:
$F = Y \cdot A \cdot \left(\frac{\Delta A}{2A\sigma}\right)$.
The 'A' terms cancel out:
$F = \frac{Y\Delta A}{2\sigma}$.