Reducing an employee's work hours is a delicate matter. The best way to approach it depends on the reason you're cutting back the hours. If you are trimming your payroll because your company is experiencing financial difficulties, then it is likely your employees will understand that it is in their interest as well to do what is best for the company. If you are reducing an employee's hours in order to maximize profit for a business that is already doing well, then it is wise to offer your employees some benefit as a result of the change, such as a wage increase.