Abstract
Large Language Models (LLMs) achieve strong performance across a growing range of domains, yet their scale poses deployment challenges in applications where latency and cost constraints are critical. This paper derives empirical scaling laws for domain-specific LLM compression, quantifying how in-domain and general knowledge performance scale with dataset size, compression ratio, supervision format, and iterative pruning schedule. Using quantitative finance as our application domain, we compare logit-based and LoRA-based distillation under iterative structural pruning, introducing a blended chain-of-thought supervision loss that stabilizes KL-divergence distillation over reasoning traces. In-domain task quality degrades predictably under compression while general-knowledge benchmarks collapse well before the same point; supervision format is the key driver of this tradeoff, with chain-of-thought supervision actively recovering general knowledge that pruning erases. We release the headline dataset FinHeadlineMix, scaling law results, and practical recommendations to provide a reusable framework for domain-specific compression decisions.
Explore similar work
Jun 19, 2026cs.CL
Chain-of-Thought (CoT) distillation transfers multi-step reasoning from large reasoning models to smaller students, but verbose teacher traces inflate both training and inference cost. Existing CoT compression methods fall into two families, selective pruning and generative rewriting, yet prior studies have left key factors entangled: granularity is confounded with importance criteria in pruning, restructuring level is rarely isolated in rewriting, and compression budgets are not systematically evaluated across domains or regimes. We recast CoT compression along three dimensions: importance criterion, restructuring level, and compression budget. Sweeping these across two model families, Math and General domains, and Long-/Short-CoT regimes, we find that (i) importance criterion utility is strictly governed by granularity: step-level criteria converge on a shared reasoning backbone, while token-level pruning requires symbol-aware signals to preserve the logical core; (ii) restructuring level inverts across domains: Math degrades monotonically with structural disruption, while aggressive rewriting acts as a denoiser on General tasks; (iii) training-time compression does not necessarily translate to inference-time savings: Long-CoT students retain verbose habits despite concise supervision, making the training ratio an optimistic lower bound on deployment cost. These findings yield condition-aware guidelines for matching compression to deployment context.
Siyang Lyu, Xinghao Chen, Zhijing Sun +3
Aug 13, 2026cs.CL
Structured pruning is a promising approach for compressing large language models (LLMs), yet existing methods rely heavily on greedy heuristics that produce myopic decisions, and often fail to precisely meet target compression budgets. We present SNIPER, a two-stage structured pruning framework that solves a knapsack optimization over coarse-granularity components to yield conditionally optimal parameter allocations with respect to fixed importance estimates, followed by a fine-grained pruning stage to meet strict budget constraints. We introduce the Compression Ratio Adherence Factor (CRAFT) to quantify budget fidelity, showing that while existing pruners deviate from target compression ratios by up to 33%, SNIPER achieves near-exact adherence with a CRAFT score of 0.98. Evaluations across four diverse architectures over a set of 18 tasks spanning five domains demonstrate SNIPER's consistent improvements in average performance retention and task-level stability over six state-of-the-art pruners. Across all pruning configurations, SNIPER achieves an excellent mean rank of 1.25, indicating its robust cross-architectural generalizability and excellent reliability.
Palaash Goel, Ayan Sengupta, Akshay Nambi +1
May 5, 2026cs.LG
We study distillation for large language models under explicit compute constraints, with the goal of producing student models that are not only cheaper to train, but structurally efficient at inference time. While prior approaches to parameter-efficient distillation, such as LoRA, reduce adaptation cost, they leave the dense backbone unchanged and therefore fail to deliver meaningful inference savings. We propose Budgeted LoRA, a distillation framework that treats model compression as a structured compute allocation problem. Instead of using a fixed student architecture, we introduce a global compute budget that sets the final target fraction of dense computation retained. Under this constraint, the model redistributes capacity across dense and low-rank pathways via (i) module-level dense retention coefficients, (ii) adaptive low-rank allocation, and (iii) post-training compression that selectively removes, approximates, or preserves dense components. This formulation yields a family of students controlled by a single budget dial. Empirically, Budgeted LoRA matches standard LoRA perplexity at a moderate budget with a 1.74x compressed-module speedup; at an aggressive budget it achieves a 4.05x speedup with moderate perplexity degradation, and it preserves higher accuracy on function-style in-context learning probes. These results suggest that, under compute-constrained distillation, retaining behavior is less about matching perplexity or removing more parameters than it is about controlling how dense computation is transferred to low-rank pathways.
Mohammed Sabry, Anya Belz