Retrenchment/rɪˈtrentʃmənt/ Definition 1 of 3Pro Tip 1/3Economic Stress Use 'retrenchment' when a business cuts costs due to financial problems. Small businesses often face retrenchment during recessions. Pro Tip 2/3Employee Impact Retrenchment might imply laying off employees. Due to retrenchment, the factory workers were worried about their jobs. Pro Tip 3/3Last Resort Retrenchment is often used as a last option to save money. Only after all other measures failed, the firm considered retrenchment.