Or consider having everyone pitch in a little to cover an open position. Avoid cutting salaries if possible. If you must make cuts, start with your own. Key executives should be next in line for pay cuts. But definitely cut pay before cutting benefits.
Employees are generally more attached to their benefits than to the specific amount of their wages.
Another step you should consider before laying off staff is instituting a four-day work week. You may want to discuss this option with your employees and get their feedback first. If you must proceed with a layoff, don't do it incrementally. Do it once, and then reassure the remaining staff that their jobs are secure. Be sure that the cuts you have made are sufficient enough to forestall a reoccurrence for some time to come.