I've seen this pattern many times over the years. Lay off a large group of expendable employees, then offer their jobs back not as direct employees but as contractors at reduced pay and no benefits. That is a poor offer, an insult to the former employee, and I refuse to submit to that.
Covid killed my job in 2020 along with a few hundred others. As soon as my resume was on LinkedIn, I get a barrage of emails and phone/text calls from recruiters offering contract positions at my former employer at reduced pay six month duration zero health insurance zero benefits. One opening spelled out my previous position with every task/skill spelled out to a "T", but required a candidate with one year of experience.
That told me all I needed to know so I abandoned my previous employer and started looking for openings out of my state. Being close to retirement (but not in a financial position to retire early), I wanted a job in a state that was favorable to retirement (IE lower cost of living). I was collecting a severance so I socked almost all of it into savings. I was in the ideal position of relocating and buying a house as I did not own property, I lived alone and had no family ties to leave behind, I had no debt or outstanding loan for a year, I had built my credit score up over the years; the end result made me the ideal candidate for a mortgage. Most people would spend their severance on extravagant things like vacation, new car, etc but I was no fool and the severance that I socked away in savings became the down payment for my house in my new job. And that was right before the mortgage interest rates started rising.
I am now very happy in my new job new home, and am well on the path to a nice retirement.