It seems like you are in the stage of your career where you are mostly making decisions based on who you want to work with and what interests you. So, if this meets those criteria, you should do it. That being said:

A) I think you underestimate how out of wack their expenses are. There is a decent chance that larger cuts will come in the next 12 months.

B) Additional cuts, along with internal management turmoil, are likely to effect your day to day job there to some degree. Are you comfortable with your manager changing? With the composition of your team changing? Are you the kind of person that just rolls with this sort of thing or will you find it frustrating as it impedes your ability to plan and execute? If I were you, I'd be asking myself these sorts of questions.