Retrenchment is a corporate-level strategy that seeks to reduce the size or diversity of an organization's operations. Retrenchment is also a reduction of expenditures in order to become financially stable.

Retrenchment is a pullback or a withdrawal from offering some current products or serving some markets.

In a military situation a retrenchment provides a second line of defense.

Retrenchment is often a strategy employed prior to or as part of a Turnaround strategy.