Usually means: Insufficient staff to meet demands.
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We found 7 dictionaries that define the word understaffing:

General (7 matching dictionaries)
  1. understaffing: Merriam-Webster
  2. understaffing: Oxford Learner's Dictionaries
  3. understaffing: Collins English Dictionary
  4. understaffing: Wordnik
  5. understaffing: Wiktionary
  6. understaffing: Dictionary.com
  7. understaffing: TheFreeDictionary.com

(Note: See understaffed as well.)

Definitions from Wiktionary (understaffing)

noun:  The situation of having insufficient members of staff.

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