This refers to the business strategy of cutting back activity.
Retrenchment, like downsizing, typically involves laying off employees, shutting down premises and cutting costs and production. It is usually a reaction to reduction in demand, either as a result of recession or of competitor activity. It can be used to re-focus an organisation on its core strengths or core markets, particularly if the organisation has previously grown in a rapid or uncontrolled way.
Retrenchment is a term normally found in strategic and financial management.
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