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Bowl Leader
40k is a considerable cut. I think the answer is with you based on the answer to two questions:
1. Can you afford to take this pay cut
2. Is the opportunity worth it - more than just title - to consider taking the pay cut?
I have previously been offered roles where I might have gotten marginally better opportunities to influence, but it was not possible for me to take the cut. I eventually made to where I want to be but it wasn't immediately.
The thing to consider would be if the company is a good stepping stone, then a title bump might be an effective way to get into that role and look elsewhere in 6m or 1 year if the cut is affordable for the time being.
Last thing to consider is if this firm has been having any layoffs or has been freezing its hiring to make sure it's not a risk.
I'd definitely ask them to come up in their comp. If they stay at $40k less, I'd walk. That's just way too much of a cut for me to be comfortable with, regardless of title.
It could be a great opportunity to advance your career. I would talk to the hiring manager about the pay for sure, though. 40k is a significant cut. If they don't budge, I would walk.
Oof that is a lot to give up. Have you asked if they would match what you are currently making? That would be what I would do first.