Lancashire have cancelled the contracts of their three overseas signings for the 2020 campaign, and all staff have agreed to a 20% wage reduction in May.
Lancashire retain the option to sign the trio for the 2021 campaign.
All English domestic fixtures have been cancelled until at least 28 May because of the coronavirus pandemic.
Wicketkeeper-batsman Watling was due to play in nine County Championship matches, while all-rounders Faulkner and Maxwell were set to join for the T20 Blast.
Meanwhile, the pay cut for all staff at Old Trafford was unanimously agreed to by the club’s players.
Lancashire director of cricket Paul Allott said all counties were facing “very uncertain and challenging times both financially and operationally”.
He told the club website: “Clearly, we are looking at a condensed and truncated season, and whilst it is of course disappointing not to have any overseas players at our disposal, it does mean that we will be able to give our young and homegrown players increased opportunities.
“I would also like to thank the current Lancashire squad for agreeing to a 20% salary reduction for the month of May.
“The players were very keen that any salary reductions for them should be in line with the rest of the club’s staff.
“It has truly been a unified approach to what is a very difficult situation we currently find ourselves in.”