Etymology
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retrench (v.1)

1590s, "dig a new trench as a second line of defense," 1590s, probably a back-formation from retrenchment in the military sense. Related: Retrenched; retrenching.

retrench (v.2)

"cut off, cut down, pare away" (expenses, etc.), 1620s, from obsolete French retrencher "to cut off, lessen, shorten" (Modern French retrancher, Old French retrenchier), from re- "back" (see re-) + Old French trenchier "to cut" (see trench). Especially "reduce (expenses) by economy" (1709). Related: Retrenched; retrenching.

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Definitions of retrench

retrench (v.)
tighten one's belt; use resources carefully;
retrench (v.)
make a reduction, as in one's workforce;
The company had to retrench
From wordnet.princeton.edu