unprofitable division
[/ʌnˈprɒfɪtəbl dɪˈvɪʒən/]
nounpl: unprofitable divisions
divisão não lucrativa
1. A business unit, department, or subsidiary that generates losses or fails to produce adequate profit margins, often becoming a financial burden on the parent organization
The company decided to divest from the unprofitable division to improve overall financial performance.
A empresa decidiu se desfazer da divisão não lucrativa para melhorar o desempenho financeiro geral.
2. A segment of a company whose operating costs exceed its revenue generation
Management identified three unprofitable divisions that needed restructuring or closure.
A administração identificou três divisões não lucrativas que precisavam de reestruturação ou encerramento.
This term is widely used in corporate and business contexts in both Brazil and the USA. In Brazilian corporations, particularly in São Paulo's financial district, the term 'divisão deficitária' is often preferred. The concept reflects modern business practices of portfolio optimization and shareholder value maximization, with companies frequently divesting unprofitable divisions to streamline operations.
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