What is policy of retrenchment?

Retrenchment policy refers to a strategic approach employed by organizations to reduce costs and improve efficiency, often through workforce reduction, downsizing, or streamlining operations. This policy may be implemented during economic downturns, financial crises, or when a company aims to refocus its core activities. While it can help stabilize an organization financially, retrenchment can also lead to decreased employee morale and potential negative public perception. Effective communication and support for affected employees are crucial for minimizing adverse impacts.