Noun

1. A tool for felling trees or chopping wood etc. consisting of a heavy head flattened to a blade on one side, and a handle attached to it.
2. An ancient weapon consisting of a head that has one or two blades and a long handle.
3. A dismissal or rejection.

   His girlfriend/boss/schoolmaster gave him the axe.

4. A gigging musician's particular instrument, especially a guitar in rock music or a saxophone in jazz.
5. A directional position or interest, by a dealer in a financial market – if one wishes to unload stock, one is “axed to sell” or “has an axe”. Derived from “have an axe to grind”, which is also used.

Verb

1. To fell or chop with an axe.
2. To terminate or reduce tremendously in a rough or ruthless manner.

   The government announced its plans to axe public spending.

   The broadcaster axed the series because far less people than expected watched it.

3. To lay off: to terminate a person's employment

   He got axed in the last round of firings.