Cost-cutting refers to the strategies and actions taken by businesses or organizations to reduce expenses and improve profitability. This can involve various methods, such as reducing staff, renegotiating contracts, or finding more affordable suppliers. The goal is to maintain or enhance operational efficiency while minimizing financial waste. Companies often implement cost-cutting measures during challenging economic times or when facing declining revenues. By carefully analyzing their budgets and identifying areas where spending can be trimmed, organizations can ensure they remain competitive and sustainable. Effective cost-cutting can lead to better resource allocation and long-term financial health for the business.