American Express to cut about 3,500 jobs despite profit jump
The card issuer plans to shed about 5% of its workforce. Third-quarter profit rose 28% and the company raised its full-year outlook.
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U.S. card issuer American Express plans to cut about 3,500 jobs worldwide. Chief Executive Stephen Squeri said that represents about 5% of a workforce of roughly 78,000, Handelsblatt reported, citing Reuters. Squeri gave the figures in an interview with Bloomberg TV on Friday after the company reported quarterly results. The aim is to keep rising costs under control. According to Banking Dive, Squeri said the company "needed to become a more agile and efficient organization." It did not say which locations or units would be affected.
Business was strong in the third quarter. Revenue net of interest expense rose 9% to $20.06 billion, and net income climbed 28% to $3.71 billion. The figures include a gain from the sale of a stake in Global Business Travel Group and restructuring charges of $336 million. Card member spending rose 8% to $454 billion. Expenses also grew 9% to $14.5 billion, including an 11% rise in marketing spending. American Express raised its 2026 earnings-per-share forecast to $18.30 to $18.60.
Investors reacted cautiously: the shares fell about 3% shortly after the opening in New York, Handelsblatt reported, as analysts had expected higher card spending. American Express joins a series of job cuts in the financial industry. British lender Barclays recently announced about 5,000 job cuts, and U.S. bank Citigroup is also reducing staff on a large scale. According to trade publication Banking Dive, American Express plans to use artificial intelligence mainly in customer-facing services such as restaurant and travel offerings.