Cost Cutting

Measures implemented by a company to reduce its expenses and improve profitability. Cost cutting measures may include laying off employees, reducing employee pay, switching to a less expensive employee health insurance program, downsizing to a smaller office, lowering monthly bills, changing hours of service and restructuring debt.

Because salaries and wages are such a large expense, many companies look to layoffs as a cost-cutting measure when times are lean. However, there are actually many costs associated with firing people, including severance pay, unemployment benefits, rehiring costs, wrongful termination lawsuits, lowering morale, and the cost of no longer getting done what laid-off employees were doing or overworking remaining employees.


Investment dictionary. . 2012.

Look at other dictionaries:

  • cost-cutting — UK US noun [uncountable] actions taken to reduce the costs of a business, government, or other organization The family of the victim blame a hospital system more concerned with cost cutting than with care. a cost cutting exercise Thesaurus:… …   Useful english dictionary

  • cost-cutting — UK US /ˈkɒstˌkʌtɪŋ/ noun [U] ► the process of reducing how much a company or organization spends: »Restructuring and cost cutting has led to an increase in annual earnings for the industry. cost cutting adjective [before noun] ► »cost cutting… …   Financial and business terms

  • cost-cutting — cost ,cutting noun uncount actions taken to reduce the costs of a business, government, or other organization: The family of the victim blame a hospital system more concerned with cost cutting than with care. a cost cutting exercise …   Usage of the words and phrases in modern English

  • cost-cutting — Gen Mgt the reduction of the amount of money spent on the operations of an organization or on the provision of products and services. Cost cutting measures such as budget reductions, salary freezes, and staff redundancies may be taken by an… …   The ultimate business dictionary

  • cost-cutting — UK / US noun [uncountable] actions taken to reduce the costs of a business, government, or other organization The family of the victim blame a hospital system more concerned with cost cutting than with care. a cost cutting exercise …   English dictionary

  • cost-cutting — / kɒst ˌkʌtɪŋ/ noun reducing costs ● We have made three secretaries redundant as part of our cost cutting programme. ● We have taken out the second telephone line as a cost cutting exercise …   Marketing dictionary in english

  • cost-cutting — / kɒst ˌkʌtɪŋ/ adjective intended to reduce costs ● We have taken out the second telephone line as a cost cutting exercise. ■ noun the process of reducing costs ● As a result of cost cutting, we have had to make three secretaries redundant …   Dictionary of banking and finance

  • cost cutting — /ˈkɒst kʌtɪŋ/ (say kost kuting) noun the pruning of unnecessary expenditure. –cost cutting, adjective –cost cutter, noun …   Australian English dictionary

  • cost-cutting — adj. Cost cutting is used with these nouns: ↑drive, ↑exercise, ↑measure, ↑move, ↑programme …   Collocations dictionary

  • cost cutting — noun the act of cutting costs • Hypernyms: ↑cut …   Useful english dictionary

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