Pay Cut or Layoff-Which would you prefer?

In these hard economic times, companies do what they have to do. Just as you would clean out your garage or attic, and get rid of things you don’t use or need anymore, so companies do a housecleaning periodically.

The question remains, which is the best way to handle the employees affected by the cutbacks. Does the company hope for and anticipate another surge in sales or activity and keep the people employed? If so, the company will have to cut back on expenses to be able to afford it.

So for both the employee faced with a possible layoff, or the employee who is almost guaranteed they will keep their job, the question would be answered differently; can we all take a pay cut and not layoff anyone?

What do you think is the best approach if you are an employee in a company which could possibly lay off some staff?  Why?

Photo courtesy Flickr by quaziefoto