U.S. October job cuts hit 43,994, the lowest for the month since 2023
- U.S. employers announced 43,994 job cuts in October 2026, Challenger data show.
- October cuts fell 71% from a year earlier, the lowest October since 2023.
- Market and economic conditions overtook AI as the top reason for 2026 cuts.
- Seasonal hiring plans reached 470,400 through October, up 26%.
ILLINOIS, UNITED STATES — U.S. employers announced 43,994 job cuts in October, the lowest total for the month since 2023 and down 71% from 153,074 a year earlier. Cuts rose 2% from September’s 43,281, while seasonal hiring plans climbed on a record announcement from Amazon.
A ‘low-fire’ labor market
Through October, employers have announced 617,189 job cuts, down 44% from the first 10 months of 2025 and the lowest year-to-date total since 2022. Outplacement firm Challenger, Gray & Christmas published the figures in its October report on Nov. 5.
“This is a low-fire environment. Employers are holding on to the workers they have heading into the holidays, and the hiring they are announcing is largely short-term, seasonal work,” said Andy Challenger, workplace expert and chief revenue officer at the firm.
Food leads, tech still tops the year
Food companies led all industries in October with 9,677 cuts, the sector’s highest monthly total this year. Technology announced 5,576, its lowest month of 2026, but still leads the year with 171,501 cuts, up 21%.
The services sector, which includes cleaning, staffing and outsourcing firms, announced 5,458 cuts in October. Its year-to-date total of 35,542 is down 44%.
The economy overtakes AI
Market and economic conditions were cited for 16,407 cuts, or 37% of October’s total. With 130,531 cuts this year, that reason has overtaken artificial intelligence as the leading driver of 2026 job cuts.
AI was cited for 1,265 cuts in October, its lowest monthly total this year, and for 121,401 so far in 2026. Microsoft’s voluntary exit offers to 60,000 employees are not counted in the October total.
Seasonal hiring arrives late
Employers announced plans to hire 444,692 workers in October, the highest October total since at least 2009. Seasonal hiring plans reached 470,400 through October, up 26%, led by Amazon’s 300,000 and UPS’s 100,000.
“Seasonal roles give companies the capacity they need for the holidays with an end date built in,” Challenger said.
What it means for employers
The report points to employers protecting headcount while relying on temporary labor for peaks. Seasonal positions account for 72% of all hiring plans announced in 2026.
Firms looking for flexible capacity without permanent hires can weigh offshore outsourcing or a virtual assistant model, and compare options in OA’s ultimate guide to outsourcing.
Related news
- U.S. quits rise to 3.4Mn in September as job openings hold at 7.5Mn · 6 Nov 2026
- Microsoft offers voluntary exit to about 60,000, a quarter of staff · 28 Oct 2026
- U.S. job cuts fall 18% in September, lowest for the month since 2022 · 6 Oct 2026
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