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Definitions by Gunther Hayes

word recycling 

In compound words, word recycling constitutes the removal of extra letters from the separate base words so as to shorten the spelling of the compound word without compromising readability.

Thus, "cellphone" becomes "celphone".
"Word recycling is part of the new wave of super-efficient language skills."

"She was just being lazy and word recycling everything."
word recycling by Gunther Hayes December 19, 2008