I got my layoff notice on Thursday. Today, they re-hired me as a direct, with an improved salary. I was told that GS is keeping all of their best contractors, and were so desperate to do so, that they will pay more than their contract wage to keep them. From what I gather, this has been such a hard hit, that critical skills are demanding a premium, so as not to lose them to other companies.
I got a 30% raise, and now have direct benefits. If you were an office worker, I'd definitely call HR, and ask about this. Not sure if all managers are aware of it, or will find out soon enough to take advantage.
It's just a rumor, at this point, but I've also heard that this is a temporary ploy to influence stock price, and that re-hiring will begin almost immediately after the dust settles. I guess we'll see.