VERB (2)

1. tighten one's belt; use resources carefully;

2. make a reduction, as in one's workforce;
- Example: "The company had to retrench"

The Collaborative International Dictionary of English v.0.48:

Retrench \Re*trench"\, v. t. [imp. & p. p. Retrenched; p. pr.
   & vb. n. Retrenching.] [OF. retrenchier, F. retrancher;
   pref. re- re- + OF. trenchier, F. trancher, to cut. See
   Trench.]
   1. To cut off; to pare away.
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            Thy exuberant parts retrench.         --Denham.
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   2. To lessen; to abridge; to curtail; as, to retrench
      superfluities or expenses.
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            But this thy glory shall be soon retrenched.
                                                  --Milton.
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   3. To confine; to limit; to restrict. --Addison.
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            These figures, ought they then to receive a
            retrenched interpretation?            --I. Taylor.
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   4. (Fort.) To furnish with a retrenchment; as, to retrench
      bastions.
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   Syn: To lesen; diminish; curtail; abridge.
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The Collaborative International Dictionary of English v.0.48:

Retrench \Re*trench"\, v. i.
   To cause or suffer retrenchment; specifically, to cut down
   living expenses; as, it is more reputable to retrench than to
   live embarrassed.
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WordNet (r) 3.0 (2006):

retrench
    v 1: tighten one's belt; use resources carefully
    2: make a reduction, as in one's workforce; "The company had to
       retrench"