Definition

1. Noun:
   • The act or process of reducing expenses: "Cost cutting" refers to deliberate actions taken by an organization or individual to decrease expenditures and operate more efficiently.
   • A policy or strategy of reducing costs: It can also describe a formal plan or initiative aimed at lowering overall spending.

Usage

• "Cost cutting" is typically used in business, economic, and organizational contexts. It is often discussed as a necessary measure to improve profitability, survive financial difficulty, or allocate resources more effectively. It functions as a compound noun, often modifying other nouns (e.g., cost-cutting measures).

Examples

• Noun:
  • The company announced a new round of cost cutting to address the quarterly losses.
  • Strict cost cutting is essential for the non-profit to continue its operations.
  • The manager proposed several cost-cutting initiatives, including reducing travel expenses.

Advanced Usage

• "to engage in cost cutting": to actively implement measures to reduce expenses.

  • The board decided to engage in aggressive cost cutting for the next fiscal year.

• "across-the-board cost cutting": reductions that apply to all departments or areas equally, without exception.

  • The financial crisis forced the university into across-the-board cost cutting.

Variants and Related Words

• Cost-cutter (noun): A person who specializes in or advocates for reducing expenses.

  • The new CFO is known as a ruthless cost-cutter.

• Cost-effective (adjective): Giving good value for the money spent; economical.

  • Switching to LED bulbs is a cost-effective form of cost cutting.

Synonyms

• Expense reduction: The act of making expenses smaller.
• Budget cutting: Reducing the amount of money allocated for spending.
• Austerity: Sternness or severity of manner; in economics, difficult economic conditions created by government measures to reduce public expenditure.

Antonyms

• Spending increase: The act of making expenses larger.
• Investment: The action or process of investing money for profit, often involving expenditure.

Related Phrases

• "Cost-cutting measures": Specific actions taken to reduce expenses.

  • The first cost-cutting measure was a hiring freeze.

• "Drive down costs": To aggressively work to lower expenses.

  • Our goal is to drive down costs without sacrificing quality.

Noun

1. the act of cutting costs