retrenchment

/riˈtrɛnʧmənt/

Other forms: retrenchments

In politics or business, retrenchment is the process of saving money by cutting expenses. Retrenchment nearly always involves laying off workers.

Retrenchment is basically a formal way of saying "layoffs" or "downsizing." If a company undergoes retrenchment, it's usually in a bad financial situation and must find ways to spend less money. Eliminating jobs is one common way to do this. As a political concept, retrenchment can mean cutting a variety of public expenses during economic downturns. An older meaning of the word was "pruning or lopping off," from the French retrenchement, "a cutting off."

Definitions of retrenchment

1. noun

   the reduction of expenditures in order to become financially stable
   synonyms: curtailment, downsizing

   type of:

   economy, saving

   an act of economizing; reduction in cost
2. noun

   entrenchment consisting of an additional interior fortification to prolong the defense
   type of:

   entrenchment, intrenchment

   an entrenched fortification; a position protected by trenches