Sounds hairy, however...
20% reduction of approx 500 crew
= 100 less staff
= approx 40 pilots and 60 cabin crew (2:3 Boeing ratio)
= 20 F/Os and 20 cpts for even numbers to remain
= Less than the total of your MXP and FCO waiting lists
They save capacity, flight-deck wise - everyone who wants to stay stays, everyone else can scuttle off or get a huge leapfrog up the list.
Very broad-brush but maybe not the death knell suggested? Albeit still a problem for CC.