That kind of thinking sounds like it would lead to a "race to the bottom" to me. If everybody is obsessing over - and competing on - a quest to cut costs the most and the fastest, I really don't see how anybody is going to benefit from that in the long run.
Or to put it another way: "You can't cost cut your way to a growing company".
Of course, I'm not saying there's never a time when circumstances change and some cost-cutting might be called for. But cost-cutting is a tactic, IMO, and not a strategy. Innovation, on the other hand, and committing to the activities that lead to more and better innovation, is a strategy.
My feeling: If you want to grow, you have to innovate. So if you reasonably believe that "20% time" is an approach that leads to useful innovations, then cutting it is a short-sighted, and arguably mistake, move.
The top gets paid an exponential figure for 'talent', but is ignored in any cost cutting measure... yet, any purely non financial 'talent' sets you on a crash course race towards minimum wage of "Oh, you did awesome this year, but times are lean.. here is a 2% raise."
Maybe I am more irked now because the company I work for just got bought by a huge company and R&D staff was slashed in half and "No more research." became a mandate
"For the engine which drives Enterprise is not Thrift, but Profit." - John Maynard Keynes