Underbid our contract to get the work - Database Administrator ActioNet Employee Review

After Actionet won the contract from the company I worked for, I got this email: "All, I appreciate your time on Friday to discuss the program and how you fit into the program. Each one of you bring a different set of capabilities and experiences that we feel are imperative to the success of the program. That being said, we are operating in a very competitive government contracting environment. We had to bid this program at a significant reduction in price from the last contract. If we would not have done so, we would not have won. Because you are key to the success, we are willing to have negative profit on each of you, but there is a limit to how much of a loss that we can incur and still make up the difference on more junior roles. Please know that the offer you receive within the next few days will be below your current salary, but that is not a reflection of our perception of your worth, more of the current contracting environment." In other words, accept a 30% pay cut. I found a better offer elsewhere.