[samsonasu]

Firing people is risky for the person potentially being fired, not for the owners of the firm. Growing and shrinking over time is part and parcel of running a consultancy. That's why you see it all the time, and I'll bet if you look closer at the ownership during layoffs you'll find that they very rarely miss a paycheck and usually escape unharmed.

The fact that it's an unpleasant reality doesn't make it any more risky than e.g. having to pay taxes.

[rday]

I agree with what you're saying, and this is probably why I don't hold a management position anywhere.

This also mirrors my experience with startups. I've been lied to about money many times to get me to keep working. The only things the owners care about is how they look to investors.