Employers cut 43,994 jobs in October. Companies now blame the economy, not AI.

U.S. employers announced 43,994 job cuts in October, the lowest October total since 2023 and 71% below the 153,074 cuts announced in October 2025, according to the Challenger, Gray & Christmas report released Thursday. October cuts rose 2% from September's 43,281.

"This is a low-fire environment," said Andy Challenger, the firm's chief revenue officer. "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."

Where the cuts are

Through October, employers have announced 617,189 cuts, down 44% from the same period in 2025 and the lowest year-to-date total since 2022, Challenger reported. Several industries moved the other way:

• Food led October with 9,677 cuts, its highest monthly total this year. The sector has announced 39,370 cuts in 2026, up 43%.
• Technology announced 5,576 cuts in October, its lowest month of the year, but leads all industries with 171,501 so far, up 21% and already more than the 154,445 for all of 2025.
• Transportation has announced 44,838 cuts this year, up 188%.
• Retail announced 3,692 cuts in October, the most since June 2025, while also announcing 13,300 hiring plans.

California led states in October with 10,032 cuts, followed by Washington (7,233), New York (4,671), Ohio (4,592) and Michigan (2,937). Michigan's year-to-date total is up 89% to 36,564.

Companies now blame the economy, not AI

"Market and economic conditions" was the top reason for the second month in a row, cited for 16,407 cuts, or 37% of October's total. With 130,531 cuts so far this year, that reason has overtaken artificial intelligence as the leading reason for 2026, Challenger said. AI was cited for 1,265 cuts in October, its lowest monthly total of the year, though it accounts for 121,401 cuts, about 20% of the 2026 total.

Challenger's count does not include Microsoft's voluntary exit offers to 60,000 employees, because it records voluntary programs by the number who accept or by a company's stated target. "These offers tend to signal more layoffs to come," Andy Challenger said. If you are weighing an offer like that, see what to check before you sign and Ryan Stygar's severance.law guide to Microsoft's buyout.

Hiring is mostly temporary

Employers announced plans to hire 444,692 workers in October, up 57% from a year earlier and the highest October total Challenger has recorded since at least 2009. Seasonal plans make up much of it: 470,400 through October, up 26% from last year's total, which was the lowest Challenger has tracked since 2012. They remain below the 660,150 announced in 2024.

Amazon announced 300,000 seasonal hires, the largest single seasonal announcement Challenger has tracked, and UPS announced 100,000. Only five companies have announced seasonal hiring this year, compared with 11 at this point last year. "They are not cutting deeply, but they are not committing to permanent headcount, either," Andy Challenger said. "Seasonal roles give companies the capacity they need for the holidays with an end date built in."

What it means if you take a holiday job

A seasonal job has an end date, so ask before you start whether it can convert to permanent work and how hours are scheduled. Our guide covers your rights as a seasonal worker. If you are laid off this season, here is a first-week checklist.

Sources

• October Layoffs at Three-Year Low; Seasonal Hiring Plans Up 26%, Challenger, Gray & Christmas
• Microsoft Is Offering Severance to 60,000 Workers. What Should You Know Before You Sign?, Severance.law