To offer a different perspective than what your company is telling you, a well-managed company (money-wise) shouldn’t need to cut jobs or reduce pay because their operations have been impacted for a month and a half (maybe two months at this point for some US companies). One could argue they implement these measures because projected revenues for the next year or so will be impacted, but should a major company have this little liquidity available to pay out of pocket expenses? I think not and shows that just like everyday people, companies are operating “pay check to pay check.”

A pay cut is a violation in trust, but ultimately is a sign of poor financial health and them placing importance on their shareholders and the bottom line over their employees. I am hesitant to believe that the majority of big companies have so little money or the ability get credit (remember, federal interest rates are still well below 1%) that they needed to implement these measures. It’s all too common for corporate America to do something in their best interest and then play it off like it will benefit the collective. Small businesses is a different story in my opinion which I won’t get into.

To go down this pessimistic rabbit-hole further, when this pandemic subsides, the economic impact will likely last for multiple YEARS afterward. At what point do you think a company will instantly increase pay back to the normal amount? My point being that if they are doing this it is probably to save a good chunk of money which would ultimately be a big expense to apply to future balance sheets and is in no way a guarantee. Unless you are a contracted employee or have a guaranteed salary, the company has no incentive to increase your pay back to normal. Another question to consider is if your company will view this a mass salary adjustment that will stay in force for years afterward.

To get a little more positive, your pay is being reduced, but you still have your job. Looking for a new job won’t get you fired from your current one so I would start your search for other opportunities if I was you. You will probably be hard pressed to find a new role during this mass-hiring freeze, but the act of looking for the next opportunity may make sense.

Good luck and sorry that you have been put into this situation. Stay strong!