First of all, the boss seems to be putting an undue burden on you. This is a budget choice out of your control. Of course, you signed up to work 40 hours a week as per your contract and that is what you want to do. It sounds a bit like they want to make it easier for them by having you agree so it is YOUR choice. But losing income for non-personal reasons is rarely a person's choice. So, please recognize that even the question is unfair. Second, if the boss is saying this it seems unlikely it is a true choice that you will be able to disagree to and keep your hours. So, I would go into the meeting clearly stating that you wish to continue working 40 hours but also go prepared with specific questions. For example, what does a reduction in hours do for your benefits, PTO, and other non-salary part of your job. How will your actual work be impacted? If you are project based, what projects will you keep? Also, decide before hand, what you will do IF the boss says that your hours will be cut. Do you want to keep working there for 20 hours a week? The more you can think through all these things before you go into the meeting, the more prepared you will be for the boss' response. Then, politely tell them that "My contract is for 40 hours a week and I would like to continue working those hours." You do not have to give a reason like to pay my mortgage, etc. State it calmly and matter-of-a-fact. If you think you can be valuable to get the numbers to turn around and make the business profitable, add that in as well. Stick to the facts, don't embellish or be emotional and let the boss talk.
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