My Megacorp cut hours rather than pay. Pretty well received. Especially since bennies kept rolling in.
We just had less to do for the same billable rate. Seems to me if your pay is cut then the rate of the service should also be cut thereby raising the amount of work coming in (in the long term). Problem being, I think lots of companies just lower the labor cost without lowering the product/output cost (producing a loose-loose situation, in the long run).
FIRE'd since 2005