Cutting costs as an emergency measure to cut losses to get you through this financial period is one thing. Cutting costs in order to boost profits and take you beyond your next financial report period requires a different strategy, My hero, Dr. W. Edwards Deming, helped Japanese businesses tackle that question very effectively. Focussing purely on cutting costs when the root issue is questionable quality, you may end up sacrificing the family farm to the god of cost reduction.
Profit, Costs and Quality: what's the relationship?
(I discovered too late a typo with 'collateral'. My apologies.)