Reduction
Cut
noun, verbal noun, の adjective
Shrink what you have into something small. It was big, now it's small. This is a reduction.
This is a jukugo word that uses the on'yomi readings of the kanji. You should be able to read this on your own.
うちの会社、他社との競争に勝つために、利鞘を縮小することを検討しているんだ。
Our company is thinking of reducing our profit margin to be competitive with another company.