Chief Executive Stephen Squeri described the cuts as a necessary step to foster agility, noting that while the company maintains strong momentum, it must optimize its structure to remain competitive. The layoffs coincide with a robust third-quarter performance, where the company reported a profit of $3.71 billion, or $5.42 per share, comfortably outpacing the $2.9 billion earned during the same period last year. Despite the upbeat financial report, shares dipped 2.9% to $315.80 in Friday's premarket trading, reflecting investor reaction to the workforce reduction.
In section Market Quotes
American Express to Eliminate 3,800 Jobs to Streamline Operations
Amid a backdrop of rising profits and increased cardholder spending, American Express announced plans to reduce its global headcount by 5%. The restructuring, affecting roughly 3,800 roles, is intended to flatten the company’s organizational hierarchy and accelerate internal decision-making processes as the firm shifts focus toward long-term innovation.
American Express has simultaneously raised its annual earnings forecast to between $18.30 and $18.60 per share, bolstered by the divestment of its stake in Global Business Travel Group. The company continues to see significant traction with its high-end membership model, particularly its Platinum card, which remains a primary growth driver in the U.S. consumer segment. By reallocating resources from the restructuring toward core priorities—specifically adding travel and luxury perks—management intends to secure its hold on higher-income consumers who continue to increase their spending on the platform.
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