Indeed, it's really common - not just with the big consultancies but also with independents.

I've been in that position a couple of times as a contractor - when a company wanted to cut back it let go a few permanent staff, and 'encouraged' other people to leave. A couple of us went back as independent contractors about a fortnight later at a much higher rate and free, thankfully, of the politics.

I know, it's cheaper to hire contractors short term but in many cases I've seen contractors who've been there way longer than any of the permanent staff too.

It makes you wonder who makes these decisions...