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vsandeep,
Sad to hear about the pay cut. You may want to check the circumstances of this. I work at a startup and they\'ve cut everyone\'s pay by at least 10% for next 3-6 months. If that\'s the case with you and you like to work in the company, and willing to stick with them (not because of GC situation), it is fine. However if you are singled out and it is take it or leave it situation, I agree with Bhanu and Super Indian, that you let them fire you, this way you will not be held responsible for leaviing the job.
With current market conditions, it might take slightly longer to find a new job. Keep looking for a new job and continue here until you find one.
Good luck.