American Express to cut about 3,800 jobs in restructuring aimed at efficiency and AI
The company plans to reduce its global workforce by about 5% and has recorded a $336 million charge. Executives say the changes will simplify operations and prepare them for automation.
American Express said on Friday, October 23, that it would cut about 5% of its global workforce, or roughly 3,800 jobs, as it restructures its operations. Executives said the changes are intended to improve efficiency and prepare the payments company for greater use of artificial intelligence. The company recorded a $336 million restructuring charge that reduced its third-quarter earnings.
The planned reduction is substantial against a workforce of about 76,800 at the end of 2025, a figure AFP cited from a securities filing. American Express did not provide further details about the restructuring in response to an AFP query, leaving the affected roles, locations and timing unclear.
How American Express plans to change its operations
Chief executive Stephen Squeri told analysts on an earnings call that the restructuring would make American Express more agile and efficient. He said it would help the company operate and execute more effectively while giving it greater capacity to invest in its priorities. His comments framed the cuts as an organizational change, while the company has not given a breakdown of how the job losses relate to specific AI projects.
Chief financial officer Christophe Le Caillec told CNBC that American Express intends to reduce management layers and widen managers’ spans of control before automating more processes. ‘You don't want to automate processes that are not optimally structured,’ he said. He described AI as a capability the company expected to use over the coming quarters and years.
AI plans alongside stronger quarterly profit
Squeri also discussed changes in how customers might use AI to make payments. He said transactions involving AI agents remained small in volume but that the technology was changing how consumers and businesses discover, compare and pay. CNBC reported that he planned to limit access to American Express systems to agents approved through specified technical channels, citing a need to protect customers and merchants.
The cuts come alongside stronger reported results. AFP reported that third-quarter profit rose 28% to $3.7 billion despite the restructuring charge. CNBC reported adjusted earnings of $4.68 a share, above the $4.48 analyst average it cited from LSEG. Revenue rose 9% to $20.06 billion, slightly below the $20.12 billion analyst forecast cited by CNBC.
American Express also raised its full-year earnings guidance to $18.30 to $18.60 a share, from $17.30 to $17.90, CNBC reported. Le Caillec said proceeds from the sale of the company's stake in Global Business Travel Group helped that measure, with part of the proceeds going toward the restructuring plan. The results put the workforce reduction in the context of a company reporting higher profit while changing how it organizes work.
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Sources and context
- American Express cutting 5 percent of global workforceNZ Herald (AFP report)
- American Express is cutting 5% of its workforce to 'prepare for AI'CNBC
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.