A project manager is managing a project that has a new sponsor who is cutting...

 When a project budget is cut, it’s important for the project manager to collaborate with the team to assess the impact of the change on the project1. This involves understanding how the budget cuts will affect different aspects of the project, including the scope, schedule, and quality. The project manager should then work with the team to develop an updated project plan that takes into account the reduced budget2. This approach aligns with the principles of servant leadership, which emphasize collaboration, team empowerment, and shared decision-making. References: 

https://project-management.com/what-to-do-if-your-project-runs-over-budget-and-how-to-prevent-it/