AmEx to cut 5% of global staff, book $336M charge

American Express (AXP) is eliminating 5% of its global workforce in a restructuring that will affect several thousand employees worldwide. Chief Executive Officer Stephen Squeri disclosed the move on an analyst call held the same day the company released its third-quarter results. The card issuer is tying the staff reduction to a $336 million restructuring charge recorded in the third quarter. The company has not specified which units, functions or geographies will see headcount reductions, nor has it given an exact number of roles to be cut.

American Express has about 78,000 employees, so a 5% reduction would affect thousands of positions.

Executives framed the layoffs as part of a broader effort to make American Express leaner and more agile. Squeri said the company has good momentum but needs to become a more efficient organization to accelerate innovation and compete over the next few years. He added that the restructuring is intended to help American Express operate and execute more effectively while creating greater capacity to invest in key business priorities.

Chief Financial Officer Christophe Le Caillec linked the restructuring directly to planned automation of internal processes. He described the charge as a step to make the company “leaner, more agile, and also to prepare for AI.” He said the company aims to reduce management layers and increase spans of control so that processes are better structured and can be automated in the coming quarters and years. The emphasis is on improving organizational design before deploying more advanced technology.

Alongside the focus on AI and efficiency, the headcount reduction is also intended to counter rising costs at the company. American Express is seeking to keep operating expenses under control while maintaining investment in strategic initiatives. The decision aligns with a broader trend in financial services, where firms are targeting repetitive roles for automation to manage costs and streamline operations.

The announcement comes during a year marked by widespread corporate workforce reductions across multiple industries. In financial services, several institutions have linked job cuts to technology-driven changes and artificial intelligence. Within this environment, American Express’s restructuring underscores how large incumbents are reshaping staff structures to support automation and long-term investment priorities, even as core businesses show resilience.