Usually means: Reuse materials in lower-quality products.
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We found 6 dictionaries that define the word downcycle:

General (5 matching dictionaries)
  1. downcycle: Merriam-Webster
  2. downcycle: Wordnik
  3. downcycle: Wiktionary
  4. downcycle: Infoplease Dictionary
  5. downcycle: Dictionary.com

Slang (1 matching dictionary)
  1. downcycle: Urban Dictionary

Definitions from Wiktionary (downcycle)

verb:  (transitive) To convert (waste materials, etc.) into new materials or products of lower quality and reduced functionality.
noun:  A period of a cycle where something is decreasing or deteriorating.

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