Hope you are not victim of corporate ploy.  I've seen large companies layoff workers then hire them back as contractors before.  Looks okay on surface especially if it included a small pay increase.

The hook is they are now an outside contractor and aren't entitled to benefits and when there is a slow down they get dropped like a hot potato, no severance, no unemployment, no vacation, no sick days, etc.

I don't think this is the case for you since you are employeed by another firm.  Get'um!