[ker-teyl] 
| to cut short; cut off a part of; abridge; reduce; diminish. |
| cur·tail (kər-tāl') tr.v. cur·tailed, cur·tail·ing, cur·tails To cut short or reduce. See Synonyms at shorten. [Middle English curtailen, to restrict, probably blend of Old French courtauld, docked; see curtal, and Middle English taillen, to cut (from Old French tailler; see tailor).] cur·tail'er n., cur·tail'ment n. |
Curtailment
The act of contracting or reducing operations of a company in the hope of bringing it financial or operational stability. This management technique is often used when a company has grown too fast and is unable to effectively manage its operations.
Investopedia Commentary
A company may use several techniques for curtailing its operations, such as cutting down its workforce or spinning off some operations. This is an effective management technique as it helps to refocus the company on operational efficiencies, which improve shareholder wealth.
Related Links
Evaluating A Company's Management
Putting Management Under The Microscope
Governance Pays
See also: Acquisition, Carve-out (Equity Carve-Out), Growth Company, Layoff, Merger, Spinoff
