I doubt it is all true.
There are only a few compounds left in Jeddah that can accept westerners (security reasons). Saudia city being one of them.
They just increased the base pay last year or the year before, rolled in the end of service benefit. As you know nothing happens fast, for the base pay to be cut so soon, it sounds unrealistic.
Insurance - possible. Hope not. North Americans are the only ones that get the outside insurance. We pay for it with reduced life insurance and reduced loss of medical insurance benefits compared to other nationalities.
Travel - possible. The expats already get pretty poor travel benefits compared to the locals. For example, they get ID85's positive space. Expats get ID50's positive space.