Deprofitized

To deprive a company, asset, or activity of its capacity to generate profits; to render something unprofitable. This can be achieved through various means, including imposing taxes, regulations, nationalization, divestiture, or a shift in market conditions. It's the process of intentionally making something commercially unviable, often for political or social purposes, or as a result of poor management. The consequence is often the loss of investment, employment, or economic output.

Deprofitized meaning with examples

• The government's decision to heavily tax the oil industry effectively deprofitized many smaller exploration companies, forcing them to scale back operations and lay off employees. This led to a decline in domestic oil production.
• After years of declining revenues due to rising costs and increased competition, the once-lucrative retail chain was deprofitized, leading to store closures and significant job losses. The company was sold for parts.
• The implementation of strict environmental regulations unintentionally deprofitized a coal-fired power plant, prompting its owners to shut it down, leading to a debate on balancing environmental concerns and economic realities.
• Following the nationalization of the company, the new management team actively deprofitized the entity, redirecting funds toward social programs which negatively affected its stock value.
• Technological advancements like ride-sharing services completely deprofitized the traditional taxi industry, with companies going bankrupt and only those adapting able to compete effectively.