From Longman Business Dictionary
retrenchre·trench /rɪˈtrentʃ/ verb [intransitiveI] formalFINANCEECONOMICS if a company, industry, or government retrenches, it spends less moneyDefense companies are retrenching and have scaled back orders.
—retrenchment noun [countableC, uncountableU]No sooner had he taken office when he announced a savage program of retrenchment and deflation.
a drasticretrenchment plan