Business & Financecomparison
American Express cuts about 5% of its global workforce while raising its earnings outlook
The company reported a $336 million restructuring charge and stronger results in the same quarter, and its executives describe the cuts as groundwork for automation and AI.
This article is general information, not financial, investment or insurance advice. Check the details with a qualified adviser before you decide.
The cuts and the charge
American Express is eliminating about 5% of its global workforce, a move that affects employees across the company [1]. The company took a $336 million restructuring charge during the quarter [1].
CEO Stephen Squeri announced the cuts on the company's third-quarter earnings call on Friday [2].
Strong results alongside the layoffs
The cuts arrive with good numbers. Adjusted third-quarter earnings were $4.68 per share, beating analyst expectations [3]. Revenue rose 9% year over year to $20.06 billion [1].
American Express also raised its full-year earnings guidance to $18.30 to $18.60 per share on an unadjusted basis, up from $17.30 to $17.90 [2]. The improved outlook was helped by proceeds from the sale of its stake in Global Business Travel Group, and part of those proceeds funds the restructuring [2].
Executives attributed part of the spending drag to the company's recent exits from small business co-brand partnerships [2].
Why the company says it is restructuring
Squeri said the firm used some of its strong business gains to invest in making the organization more efficient and better prepared for the future [1]. He said American Express needed to become a more agile and efficient organization to accelerate innovation and win over the next few years [2].
CFO Christophe Le Caillec said the restructuring was intended to make the company leaner, more agile, and ready for AI [1]. He said the company is reducing layers and increasing spans of control so it can automate and use AI in coming quarters and years [2]. Spans of control are the number of people who report to each manager.
Le Caillec said the cuts are groundwork for automation rather than a direct replacement of workers by technology [2].
How AI fits into the company's plans
Squeri spent about 10 minutes of his prepared remarks on AI, focusing on how it will personalize experiences and offers for cardholders [2]. He said American Express will not let AI assistants run rogue through its systems and will only allow agents approved through API or MCP channels [2].
The Amex cuts reflect a broader trend in financial services, where banks are working to replace repetitive roles with AI automation [3].
A court ruling from China
A Chinese court ruled that employers cannot demote or dismiss staff solely to replace them with artificial intelligence [2].
What this means for you
If you work at American Express, the company is eliminating about 5% of its global workforce [1]. Le Caillec said the company is reducing layers and increasing spans of control, which is groundwork for automation [2].
If you hold or follow the stock, the company raised its full-year guidance to $18.30 to $18.60 per share on an unadjusted basis, up from $17.30 to $17.90 [2]. You can also note that the $336 million restructuring charge is partly funded by proceeds from the Global Business Travel Group stake sale [1][2].
If you are a cardholder, Squeri said AI will personalize experiences and offers, and that only agents approved through API or MCP channels will be allowed [2].
Sources
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