
zurückfahren
to drive back
To return to the starting point of a trip in a vehicle.
Nach dem Ausflug sind wir am Abend wieder nach Hause zurückgefahren.
After the outing, we drove back home again in the evening.
to drive back / reduce
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to drive back
To return to the starting point of a trip in a vehicle.
Nach dem Ausflug sind wir am Abend wieder nach Hause zurückgefahren.
After the outing, we drove back home again in the evening.

to reduce
To reduce or scale back something, for example production, expenses, or activities.
Wegen der geringen Nachfrage musste das Unternehmen die Produktion zurückfahren.
Because of low demand, the company had to reduce production.

to move back
To move a vehicle or movable object backward or to an earlier position.
Könntest du den Stuhl bitte ein Stück zurückfahren, damit ich vorbeikomme?
Could you move the chair back a little, please, so I can get past?
'Zurückfahren' (to drive back / reduce) is a separable verb. In a main clause, the prefix 'zurück' goes at the end. In subordinate clauses and in the infinitive with 'zu', the verb stays together.
Wann fährst du heute Abend zurück?
When are you driving back tonight?
The perfect tense is formed with 'sein' when movement back to the starting point is meant. When something is reduced or an object is moved, 'haben' is used.
Wir sind nach dem Urlaub direkt nach Hause zurückgefahren.
We drove straight back home after the vacation.
You can recognize the figurative meaning 'reduzieren' (to reduce) from the object. If it is about abstract things like 'Produktion' (production), 'Kosten' (costs), or 'Ausgaben' (expenses), this meaning is intended. With places or vehicles, it is about literal movement.
Das Unternehmen muss die Produktion zurückfahren, um Kosten zu sparen.
The company has to reduce production in order to save costs.
to reduce
Both words can express a reduction in spending, production, or activities. „Reduzieren“ neutrally states that the amount is lower, while „zurückfahren“ tends to emphasize gradually restricting a previous level. „Reduzieren“ is appropriate for a general reduction; when particular activities are being cautiously scaled back, „zurückfahren“ is more suitable.

Das Unternehmen fährt seine Ausgaben im nächsten Jahr schrittweise zurück.
The company is gradually scaling back its spending next year.
Das Unternehmen reduziert seine Ausgaben im nächsten Jahr um zehn Prozent.
The company reduces its spending by ten percent next year.