American Express announces 5% workforce reduction and raises full‑year earnings outlook
American Express said it will cut about 5% of its global staff, roughly 3,500 jobs, to streamline operations and invest in artificial intelligence. The company reported third‑quarter revenue of $20.06 billion, up 9%, and net income of $3.71 billion, up 28% year over year. It recorded a pretax restructuring charge of $336 million and lifted its adjusted full‑year earnings‑per‑share forecast to $17.60‑$17.90. Shares fell after the announcement.
Why it matters
The raised earnings outlook signals higher profitability for the year, while the restructuring charge and job cuts are expected to improve cost efficiency. The stock decline reflects investors’ immediate reaction to the workforce reduction.
Key facts
- 1American Express plans to cut about 5% of its global workforce, roughly 3,500 jobs. finance.yahoo.com
- 2The company reported third‑quarter revenue of $20.06 billion, up 9% from the prior year. americanbazaaronline.com
- 3Third‑quarter net income was $3.71 billion, a 28% increase year over year. finance.yahoo.com
- 4Adjusted earnings per share for the quarter were $5.42. americanbazaaronline.com
- 5A pretax restructuring charge of $336 million was recorded in Q3. econotimes.com
- 6The full‑year adjusted earnings‑per‑share outlook was raised to $17.60‑$17.90. finance.yahoo.com
Open questions
- Job cut numbers differ across sources: 3,500, 3,800, 3,850.
- Share price decline reported as 1.94% and 3.7%.
Summary written by AlphAI AI Desk from 9 of 9 sources. Not investment advice. Figures are as stated by the linked sources.