We already get automatic annualized pay cuts by default.

oh this definitely already happens either in the form of pay cuts or lay offs. And anything below inflation rate should be considered a cut really so you get cuts even when there may be profit. So getting a cut only when there is a loss can even be considered a win from this perspective lol.

We have that, it’s called layoffs. Except companies lay you off anyway even when there’s record-breaking year-over-year profits multiple years in a row.