I see this as a red flag for several reasons. 

1) Everyone is struggling to get enough resources given the sheer ammount of projects and apparently that company is not doing that well.

2) They're going back on their word to save just a few bucks, as they still have some work for you. This speaks loads to their character. One could understand in a small firm or a tough business environment. It's not the case.

3) This is completely out of the industry norm.

What are your options:

1) Go back to the offer you rejected and explain your situation. Explain that you lost confidence in the other company given their behavior and would take their offer if that was still on the table.

2) Refuse the new alternative offer and tell them you want them to be true to their word. (you don't say that you refuse. you say that you need the money and are unable to change to the new contract offer).

3) Negotiate (if there's a middle ground that would be preferrable to you).

4) Accept their offer.

5) Options 2-4 above + start looking for another job, and feel free to take on a better offer if that comes up.

Dear, 

I am so sorry to hear this. 

I would also suggest you speak to the firm (preferably HR) and get better clarity on the details, but I would not sign the contract for you as an intern. The biggest risk here is that they will continue to take advantage of you throughout your career. 

In the meanwhile, I would try to check the other options out there. E.g. the firms that you declined, other firms (leverage your network), or potentially your old firm. 

Please drop me a private message if you want to speak about this in more detail. Also, feel free to follow me on Linkedin. Depending on your location and/or experience I might be able to help you get a job. 

The answer given by Moritz is great. I will only add a few points:

a) Given this, their business is not strong enough and long-term you would want to find other options

b) See the positive, they seem to have a difficult time and yet are sending you a signal that they are still interested in you - again because of a) I would not recommend working there, but this might at least cheer you up

c) When deciding what to do, - besides all mentioned by Moritz - if left with the option of only joining them or spending time off work and searching again, consider that you might find another consulting firm relatively quickly and only take the internship offer if you have sufficient time to interview next to it. Of course sometimes we are pressured for money but if you can avoid joining under the wrong conditions, it is probably better for you long-term.

All the best

Hi there,

I'm so sorry to hear this! This is truly unfortunate and not ok.

Ultimately there are a few things you can do (some in parallel):

1) Refuse to intern and insist on the job. They signed a contract and you can hold them to it. They will need to give you due compensation especially in light of you already having left your other jobs and turned down other offers.

When doing all of this do so respectfully, politely, but also sternly.

2) Reach out to the other firms whose offers you denied. See if you can still join

3) Network and apply to other firms

4) Worst case scenario: Ask your old firm to take you back