Cutting Down or Reduction

Cutting Down or Reduction???? I wonder if this is how my boss understand Retrenchment.
Last week, I just found out that our boss asked our messenger to throw away all scratch papers. Those were still good scratch papers since the back side of those were still empty. And those could be used to cut cost paper usage. There are many costs that were unnecessary. One was to rent a warehouse office just to store archives even if there were enough space inside our office.