That's just going to cause all the high performers to jump ship (heh), because they can find a new job that doesn't have cut hours.

Cutting hours isn't going to be a viable option when you're also cutting their pay.

There are plenty of people who simply can't afford to stay at a company when their pay is being cut by 10% or more. They need pretty much all of their salary to pay bills. Taking such a pay cut is only an option for the higher incomes, where there is some jiggle room due to significant discretionary income.

Ontario Canada's NDP gov't tried this approach in the 90s for the public service in response to a budget deficit. They called it Ray days. The approach was very unpopular with public servants and the public generally. It was one of the reasons for the party's loss of influence.