Meaning of the word "cut one's losses" in English

What does "cut one's losses" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

cut one's losses

US /kʌt wʌnz ˈlɔː.sɪz/
UK /kʌt wʌnz ˈlɒs.ɪz/
"cut one's losses" picture

Idiom

to stop doing something that is failing in order to prevent more loss or damage

Example:
The project was clearly failing, so the company decided to cut its losses and cancel it.
I realized the investment was bad and decided to cut my losses before I lost everything.