If something like that happened here, I think the key would be whether they did it with the entire department, or pay-level. If it was fairly universal, I don't think most people would be offended. If it was targeted to only a few, I would think I would see the writing on the wall.
I have had my job eliminated as a result of a merger before. We were all invited to apply for jobs with the new company, and the company line was that there were many openings, and if we were willing to relocate, and had the qualifications, we would have a job. When it came time for the interview, however, it became clear that they had no intention of retaining us. It turned out great for me, however, as I got a great job with another company, and got to keep my severence!