> Pay cuts are better than layoffs. Unfortunately, I highly doubt that. With pay cut, comes a huge drop in morale across all the employees. Highly performers e

> Pay cuts are better than layoffs. Unfortunately, I highly doubt that. With pay cut, comes a huge drop in morale across all the employees. Highly performers even consider leaving, and some employees leave. After a layoff, the rest of the employees are more productive and the company gets to decide which employees to lay off (depending on business needs, comp-to-productivity, or whatever else). > That said, investors need to take a paycut in dividends as well. Totally agreed. As an investor and an employee, I feel sad to see my peers be laid off just so that a company can pay the same dividends and maintain earnings.