With the job market still being as strong as it is, cutting pay like that would be a disaster.
If my employer told me they were cutting my pay by 20% one morning I would already be out doing interviews by the afternoon.
With layoffs you at least control what talent you are giving up in exchange for a smaller payroll. With across the board salary reduction, your most talented employees will get up and leave and the people who remain will be demoralized and poorly motivated.
If my employer told me they were cutting my pay by 20% one morning I would already be out doing interviews by the afternoon.
With layoffs you at least control what talent you are giving up in exchange for a smaller payroll. With across the board salary reduction, your most talented employees will get up and leave and the people who remain will be demoralized and poorly motivated.