Retrenchment

Retrenchment is a strategy used by organizations to reduce costs during challenging times. It typically involves cutting back on expenses, such as laying off employees, reducing production, or postponing projects, to improve financial stability. The goal is to ensure the company's survival and return to profitability. While often necessary during economic downturns or financial difficulties, retrenchment can impact staff and operations, so it is usually implemented carefully and strategically.