Despite ongoing headlines about mass layoffs, new research finds that layoff numbers are actually slightly lower this year than last.

According to a new report from Challenger, Gray & Christmas, job cuts in October were up a slight 2% from September 2026, but ultimately down 71% from the same month in 2025. In the first 10 months of 2026, there have been more than 617,000 job cuts, compared to nearly 1.1 million in the same timeframe in 2025.

Andy Challenger, chief revenue officer for Challenger, Gray & Christmas, says the U.S. is in a low-fire environment right now, with many organizations holding on to the workers they have and hiring largely focused on short-term, seasonal work.

"Companies want the flexibility to meet holiday demand without adding permanent headcount," Challenger says.

Will things change come January? Another new piece of research reports that business leader anticipate cuts in 2027.

In a survey of 600 HR and business leaders at U.S.-based companies, LHH found that 69% expect layoffs in the next year, compared to just over one-third two years ago.

Public organizations are more likely to anticipate layoffs than private ones, as are CEOs when compared to HR leaders.

"Layoffs are sometimes the only way to protect or grow a business," LHH writes, noting that ongoing layoffs in 2027 mean that, from messaging to separation benefits, HR needs to prepare for rolling out reductions.

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