salary cut

Positive:
1) company can reduce salaries expenses
2) company can improve cash flow
3) creditors may have positive view on the company operation if the salary cut fits their expectation
Negative:
1) staff's morale reduces
2) degree of cut if not fair to all employees, employees will be very unhappy
3) staff may commit strike or demostration
4) company's financial situation may be questioned by creditors