[SilliMon]

Not necessarily; few employees are willing to take a pay cut - that is why 5% of staff are laid off, rather than everyone in the company taking a 5% cut.

The latter would probably be more efficient for the company. However many workers would start looking for a better job.

[chris_wot]

Rubbish. The entirety of EMC got a 5% pay cut two years ago, and there were people who actually thanked EMC management for doing so.

A week later they made a billion dollar acquisition, and they still made a good profit.

Don't tell me that folks won't take a paycut. They'll take one, and be grateful!