What is better for cost cutting - Salary Cuts or Layoffs?

"If you ask me the appropriate measure to manage or to handle the financial crisis I would say its effective planning strategy which would be the counter measure handling the pit fall. Effective planning strategy is not layoffs or salary cuts, but cutting down the operational expenses, postponing the immediate projects of high costs until the depression period is over, planning the alternative methods of revenue involving low expenditure and diverting the human resource to the alternative revenue yielding projects. What I say is not so easy as we discuss, but I believe the practice of effective planning strategy will dramatically yield results without layoffs and salary cuts.”