reduce profits

USAGE SUMMARY

"reduce profits" is a correct phrase that can be used in written English.
It means to decrease or lower the amount of money that a person or business earns after expenses are taken into account. Example: The company implemented cost-cutting measures in order to reduce profits and stay competitive in the market.

✓ Grammatically correct

News & Media

Science

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

COMPETITION tends to reduce profits.

The Economist

This oversight would increase costs and reduce profits at brokerage firms.

The New York Times

That would reduce profits but enable the companies to control their patents.

The New York Times

Mr. Hewlett, the only family member left on the board, opposes the merger claiming it would reduce profits.

The New York Times

There were widespread markdowns to get rid of excess inventory, and analysts said such price cuts could eventually reduce profits.

The New York Times

They accused Republicans of doing the bidding of the oil industry by refusing to take action that could reduce profits.

The New York Times

A slip-up in the production process could reduce profits — and hurt his chances to succeed Mr. Mulally.

The New York Times

Banks have warned that the new regulations could reduce profits, strain weaker institutions and raise the cost of borrowing.

The New York Times

But business groups have countered that the measures will reduce profits, impede innovation and limit job creation.

The New York Times

Investors were concerned about the outlook, with the company saying higher costs would reduce profits in its milk business in the current year.

The Guardian - Business

In the third quarter, the $1.7bn loss on the sale of the Brazilian business helped reduce profits to $843m from $6bn in the same period a year ago.

The Guardian - Business

Expert writing Tips

Best practice

When discussing the financial impact of a decision or event, use "reduce profits" to clearly convey a decrease in earnings after expenses. For instance, "Increased competition can reduce profits for all companies in the sector."

Common error

Avoid using "reduce profits" when you mean to describe actions taken to minimize losses. "Reduce profits" refers to lessening existing gains, while efforts to cut losses address preventing further financial setbacks. The two are distinct concepts.

Linguistic Context

The phrase "reduce profits" functions as a verb phrase where 'reduce' is the verb and 'profits' is the direct object. It describes an action that directly impacts the company's financial earnings, as confirmed by Ludwig AI.

Expression frequency: Very common

Frequent in

News & Media

61%

Science

20%

Formal & Business

19%

Less common in

Academia

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "reduce profits" is a common and grammatically correct way to describe a decrease in earnings after expenses. As Ludwig AI confirms, it's widely used across various contexts, particularly in News & Media and Science, making it suitable for neutral and informative communication. While synonyms like "decrease earnings" or "lower income" exist, "reduce profits" specifically highlights the reduction of already-existing financial gains. It's crucial to avoid confusing it with actions aimed at minimizing losses, as these are distinct concepts. When writing about financial outcomes, using "reduce profits" ensures clarity and precision.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

decrease earnings

Focuses specifically on "earnings" rather than overall "profits".

lower income

Refers to "income" which is a broader term than profits, including revenue from various sources.

diminish returns

Emphasizes the reduction of "returns" on investment, which is more specific than profits.

cut revenues

Focuses on decreasing "revenues", implying a reduction in total income before expenses.

erode profitability

Suggests a gradual decline in "profitability", rather than a sudden reduction.

depress margins

Highlights the negative impact on "profit margins", indicating a reduction in the percentage of revenue that becomes profit.

constrain gains

Implies limiting or restricting potential "gains", rather than an actual decrease.

impair benefits

Focuses on lessening the "benefits" derived from an activity or investment.

lessen proceeds

Highlights a decrease in "proceeds", which refers to the amount of money received from a sale or transaction.

curtail surplus

Emphasizes the reduction of a "surplus", meaning an excess of income over expenditure.

FAQs

How can I use "reduce profits" in a sentence?

You can use "reduce profits" in a sentence to describe actions or events that lead to a decrease in a company's earnings after expenses. For example: "Increased operating costs will likely "reduce profits" this quarter." or "The new tax law is expected to "reduce profits" for many businesses."

What are some synonyms for "reduce profits"?

Some synonyms for "reduce profits" include "decrease earnings", "lower income", or "diminish returns". The best alternative depends on the specific context.

Which is correct: "reduce profits" or "increase losses"?

"Reduce profits" and "increase losses" describe different scenarios. "Reduce profits" means lessening the amount of money earned after expenses, while "increase losses" refers to a greater financial deficit. They are not interchangeable.

What's the difference between "reduce profits" and "maximize efficiency"?

"Reduce profits" describes a financial outcome (a decrease in earnings), while "maximize efficiency" is an action or strategy aimed at improving productivity and potentially increasing profits. They are related in that improving efficiency can prevent actions from "reduce profits".