I would be upset if I had to take such a drastic pay cut. Especially for such a demanding job and when the new contracter is receiving the same pay. That's ridiculous! Would you be able to meet with management and discuss a higher wage? Do they want to lose good workers and then have to re-train new workers?
Unfortunately, I can't think of another job where you'd get paid so well and keep your own hours except translating for schools and businesses (contracted) and possibly tutoring.