I gave it a bit of thought, and here's what I would do if my employer asked me that... The first thing I'd do (if I hadn't done so before) would be to assess the viability of the company I work at.
If it looks like the company has a good chance of survival in the medium/long-term, I could take a short period of unpaid work, which may also improve the chances of keeping the job later on (assuming the manager thinks that way).
If instead it looks like the company is going to go out of business anyway, I would definitely milk the company's coffers for as long as possible... what's the point of taking a pay cut if you're going to lose your job anyway? Note that going bankrupt doesn't mean going out of business, a bankrupt company can often emerge again (though it's hard to emerge as a truly viable company).
Either way (and this is the most important part) I would immediately be looking for another job at a more viable company. Preferably one which is either in a really strong position, or failing that one which has already downsized recently... usually companies don't layoff people twice in a row.
My Mario Kart Wii friend code: 2707-1866-0957
