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Hm. An across-the-board pay cut can help, but it had darn well better *be* "across the board," and that board includes upper management. :-) How well people deal with it I think depends on how much esprit there is among the employees. My last company tried that as a strategy. Maybe I was just young and dumb, but hearing, "your collective 10% pay cut means we didn't lay off x people" was something of a boost for me. (Of course, it turned out to be a brief reprieve....)
But anyway. If there's a good chance (as you implied) that they'll cut your position anyway, offering the part-time solution doesn't seem like it'll hurt. Best case, you'll both be happy. Worst, you won't be any worse off than you are now.
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