I worked at middle-sized company that instituted a pay cuts, cutting all bonuses and stopping raises. After year, company lost almost every person in tech managenent and most of team leaders, their clients actively executing forking rights and no one believes in company future now.

I once heard wise words from some CEO. In harsh times, clients do not want cheaper and worse services from us. They want less services. So we are moving out headcount down, while keeping pay and even execute raises for those who stay.