That sucks, Lyonaria. I had a similar thing happen to me, even down to the "we don't know who's going to stay ". Here's what I learned :
You are right to identify the "we are going to keep some people, we just don't know who" as BS. This is only to convince everyone to keep working during the consultancy period in some sort of competition to keep your job. It's a sucker's game, you don't want a job in such a failing company anyway. Stop working and start finding a new job.
Double check the legalities, but the law says you can use company time and resources to find a new job. You can also take as much time as you need to attend interviews. Do all of these as much as possible. Of course, the company is going to pretend that all those laws are just lip service and "we've still got plenty of work to do and if you keep working really hard you may keep your job and you wouldn't let your colleagues down who are still working hard....". All of that is BS. You owe this company nothing and if you think they will do any more for you than the bare minimum, you are wrong.
Also, I went on to find a much better job and you will too.