Ideas	Voting results and bounty paid	Comments

Even if you only expand your role a little bit, if you take the lead and show that you'd be happy to take the load off of others, it's going to be hard to look you in the eye and give you a pay cut.
Suggested by Scott

Everyone's circumstances are different but try to something of benefit in return such as: (1) Four 10 hour work days could mean less gas commuting or time for a 2nd job part time or taking a couple of college classes. (2) Longer vacation. (3) Shorter workday could save cost of after-school childcare.
Suggested by Nancy

Negotiate the best deal you can and don't ever stop looking for a job again. Next time, you'll have a network of people who know what you want and other companies who've been interested in what you do. It's a lot easier to say "no" to a pay cut when you've created an alternative.
Suggested by Brian

hey, it's worth a shot!
Suggested by Troy

by taking on more responsibility you can offset the pay cut
Suggested by Troy

Determine for how long this paycut is to last and negotiate from there
Suggested by Troy

A common rule of thumb is that it takes approximately 1 month to find a job for every $10k you earn. Compare how long you can expect to be out of work (minus the amount of time you'll receive severance pay & benefits) with the pay cut you'll be taking. If you can expect to be out of work 6 months, but you're being paid 3 months severance then you're effectively taking a 3 month hit. Does the pay cut = more than 3 months salary and benefits? If so, you might do better to choose the layoff.
Suggested by Annette

If you opt for the layoff in lieu of a paycut, will there be severance? What does the severance include? Will they cover your health insurance premiums? If you have to pay COBRA yourself, will you be able to do that and meet your bills on unemployment?
Suggested by Annette

If you believe Tim Farris of the 4 hour work week, 20% of your time creates 80% of the value. Reduce the hours with your current employer and then use free lance websites like odesk to do higher value added work.
Suggested by Robert

Imagine what could be the worst to happen if everything went wrong. Then really look at it again, without prejudice. Will you be able to cope? Can you manage on the lower salary without being depressed all day? Probably you can, so go for the talk... fearless!
Suggested by Ben

First determine the health of your employer. If the ship is sinking, may be you should find a life raft and paddle. If they have promise, hang tight if you can afford it. Secondly, determine your roll in that establishment. If you believe your roll is significant to the ongoing health of the company, negotiate harder than if you're a paper pusher.
Suggested by Doyle

Lots of people seem to think they silently and secretly underachieve, but nobody else has found out yet! Stop this thinking. Look at the way you do your job from someone else's perspective and acknowledge your real value. Then step into the negotiation.
Suggested by Ben

It's seems like setting the stakes too high. But if they value your work, they will give in. If they don't, find a better employer. Every layoff presents new horizons.
Suggested by Ben