Retrenchment Strategy
Strategy reducing business scope/operations; cutting back.
Real World
In 2023, Meta cut over 21,000 jobs and closed several projects including Workplace, retrenching to refocus resources on its core platforms and AI development amid falling ad revenue.
Exam Focus
When evaluating retrenchment, always weigh short-term cost savings against long-term risks such as loss of capability or damage to brand reputation.
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