1. to reduce costs or spending, especially by eliminating jobs or cutting expenses
Usage: business; economics
2. to establish a defensive position by digging trenches or fortifications
Usage: military; formal

Examples

• The company retrenches during economic downturns to survive.
• Management retrenches by laying off workers and closing branches.
• The army retrenches behind the hill to prepare for battle.
• When profits fall, the business retrenches its operations.
• The general retrenches his forces in a strong defensive position.
• The corporation retrenches spending on research and development.