Employers announced 43,994 job cuts in October, the lowest October total since 2023, and Challenger, Gray & Christmas attributes 1,265 of them to AI, the fewest in any month this year. Separately, Canva laid off or asked to relocate about 1,200 people, 22% of its workforce, and CEO Melanie Perkins called it the hardest moment in the company’s 13-year history. The Bureau of Labor Statistics reported the same day that third-quarter output grew 3.7% on 0.1% more hours worked, and that workers’ share of output fell to 53.0%, the lowest since the series began in 1947.
By the Numbers
U.S. employers announced 43,994 job cuts in October, the lowest October total since 2023 and down 71% from October 2025 (Challenger, Gray & Christmas).
AI was cited for 1,265 of those cuts, the lowest monthly count of 2026 (Challenger, Gray & Christmas).
Initial jobless claims for the week ending October 31 came in at 189,000, down 6,000 (U.S. Department of Labor).
Canva laid off or asked to relocate about 22% of its workforce (Fortune).
Workers’ share of nonfarm business output fell to 53.0% in the third quarter, the lowest since 1947 (U.S. Bureau of Labor Statistics).
Layoffs and Company Decisions
Challenger: October Layoffs Fall to a Three-Year Low, and AI Explains 1,265 of Them
U.S. employers announced 43,994 job cuts in October, up 2% from September’s 43,281 and down 71% from the 153,074 announced in October 2025. Through October, cuts total 617,189, down 44% from the same period last year. Market and economic conditions led October’s reasons with 16,407 cuts (37%) and have overtaken AI as the top reason for 2026 cuts, at 130,531 year to date. AI was cited for 1,265 October cuts, its lowest monthly total this year, and for 121,401 year to date, about 20%. Technology cut 5,576 jobs, its lowest month of 2026, and still leads all industries with 171,501 year to date. Employers also announced plans to hire 444,692 workers, up 57% from October 2025. Andy Challenger, the firm’s chief revenue officer, called it “a low-fire environment.”
Challenger, Gray & Christmas, Andy Challenger, November 5, 2026. Read the report.
Why it matters: AI accounted for about 3% of October’s cuts, against about 20% of the year-to-date total. Leaders sizing displacement risk should read that monthly figure beside the 57% jump in announced hiring plans before assuming the year’s earlier pace continues.
Canva Cuts 22% of Its Workforce and Sets Out to “Refound” the Company
Canva laid off or asked to relocate about 1,200 people, roughly 22% of its workforce, Fortune’s Emma Hinchliffe reports. In a staff note, CEO Melanie Perkins called it “without doubt the hardest moment in our 13-year history,” wrote that “small changes won’t be enough,” and said she plans to “refound” Canva. Two pressures sit behind the cuts: the cost of AI features users now expect, and users producing visual assets with other AI tools instead of Canva. The company cut its growth forecast in August. Departing employees receive six months of severance, career search resources, and $10,000 grants for those who start their own ventures. Canva sells AI design products, and Fortune doesn’t name the roles affected or the number asked to relocate.
Fortune, Emma Hinchliffe, November 5, 2026. Read the report.
Why it matters: Canva ties the cuts to slowing growth and AI delivery costs and pairs them with six months of severance and $10,000 start-up grants. Leaders planning a restructuring can expect departing employees to compare their package to that one.
Initial Jobless Claims Fall to 189,000
Initial claims for the week ending October 31 came in at 189,000, down 6,000 from the prior week’s revised 195,000. The four-week average fell 2,250 to 194,750. Insured unemployment for the week ending October 24 rose 23,000 to 1,718,000 (release USDL 26-1680-NAT).
U.S. Department of Labor, Employment and Training Administration, November 5, 2026. Read the report.
Why it matters: Claims and Challenger’s announced cuts both show employers laying off few workers. The pressure on workers shows up in hiring and pay, as the productivity data below shows.
Output Grows 3.7% on 0.1% More Hours, and Workers’ Share of It Hits a Record Low
Nonfarm business labor productivity rose at a 3.6% annualized rate in the third quarter, the Bureau of Labor Statistics reported November 5. Output grew 3.7% while hours worked grew 0.1%. Labor’s share of output fell to 53.0%, the lowest in the series, which begins in the first quarter of 1947. Real hourly compensation rose 1.1% and unit labor costs fell 0.7%. Indeed Hiring Lab’s Aubrey Woessner notes that since the end of 2022, output has grown about 12% while hours grew less than 1% and employment 1.7%, and that the gains are “yet to reach” jobseekers amid low hiring. Woessner sees AI investment contributing to measured productivity but finds no clear AI-driven jump in efficiency yet.
Indeed Hiring Lab, Aubrey Woessner, November 5, 2026. Read the analysis. U.S. Bureau of Labor Statistics, Productivity and Costs, Third Quarter 2026 (preliminary), November 5, 2026. Read the release.
Why it matters: Employers added output without adding hours, and workers’ share of it reached a record low. Productivity grew 3.6% while real hourly compensation grew 1.1%, which gives employees a case to make with the government’s own figures.
What Workforce Leaders Are Watching
If AI explains about 3% of October’s cuts, which of your headcount decisions are you attributing to AI, and what will you tell employees about the rest?
Canva paid six months of severance and funded $10,000 start-up grants. When your next restructuring lands, what package will your departing employees compare it to?
Labor’s share of output sits at 53.0%. Which of your roles produced more in 2026 on the same hours, and has pay for those roles moved?
This briefing was prepared automatically by the Workforce Rewired research assistant. All stories include direct source links.