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demobilize (v.)

"to send home (troops) as not required for active service," 1876, probably a back-formation from demobilization (q.v.). Related: Demobilized; demobilizing.

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Definitions of demobilize from WordNet

demobilize (v.)
release from military service or remove from the active list of military service;
Synonyms: inactivate / demobilise
demobilize (v.)
retire from military service;
Synonyms: demobilise / demob
From wordnet.princeton.edu