Cut one's losses
Meaning
To stop an unsuccessful activity or venture to prevent further detriment, expenditure, or damage.
Origin
Imagine a seasoned gambler at a bustling 19th-century card table, chips dwindling with each turn of the cards. He's down, but he knows the cardinal rule: sometimes, the smartest move isn't to chase a bad hand, but to simply stop playing. To 'cut' his losses is to acknowledge the game is against him, to walk away with what little he has left, preventing further ruin. This visceral act of financial prudence, likely emerging from the world of wagering and early commerce, perfectly encapsulates the difficult decision to abandon a failing venture rather than sink deeper into an inevitable loss.
Examples
- After six months of declining sales, the company decided to cut its losses and close the unprofitable division.
- She realized the old car was going to cost more in repairs than it was worth, so she chose to cut her losses and buy a new one.