Cancel a strike over entitlements, initially (3)

I believe the answer is:

axe

I'm a little stuck... Click here to teach me more about this clue!

'cancel' is the definition.
(I've seen this before)

'a strike over entitlements initially' is the wordplay.
'a strike over' becomes 'ax' (I can't explain this - if you can you should believe this answer much more).
'initially' suggests taking the first letters.
The initial letter of 'entitlements' is 'e'.
'ax'+'e'='AXE'

Can you help me to learn more?

(Other definitions for axe that I've seen before include "Terminate - with a hatchet?" , "Terminate; chopper" , "Get rid of" , "Guitar" , "fell" .)

I've seen this clue in the Sydney Morning Herald.

Want a hint initially instead of a full solution? Install my app