This review of retrenchment in higher education covers background information, basic concerns, suggestions for making cuts, and lessons learned from experience. Contents concern financial pressures, enrollments, faculty relations during retrenchment, services and programs during retrenchment, administration during retrenchment, and case histories of retrenchment action at specific colleges and universities. Specific topics include: enrollment trends and projections, attrition and retention, faculty development, faculty turnover and tenure ratios, alternatives to tenure, collective bargaining, student/faculty ratios, faculty reduction, student services administration, zero-based budgeting, the decision-making process during retrenchment, public funds, tuition, external funds, and operations. Some important steps that higher education institutions should take to prepare for retrenchment are suggested. Extensive notes and a bibliography are included. (SW)