The credit card giant plans to eliminate about 5% of its global workforce despite reporting a 28% increase in quarterly profit. The announcement follows Barclays’ plans to cut 5,000 jobs as financial institutions turn to technology to streamline operations and reduce costs.
American Express plans to eliminate approximately 3,500 jobs worldwide as part of a restructuring aimed at improving efficiency, simplifying operations and preparing the business for greater use of artificial intelligence (AI).
The announcement was made Friday, October 23, by Chief Executive Officer Stephen Squeri alongside the company’s third-quarter financial results. American Express had approximately 78,000 employees worldwide, meaning the cuts will affect roughly 5% of its workforce. The company has not specified which departments or locations will be affected.
The company expects to incur $336 million in restructuring charges, covering workforce reductions and organizational changes.
Chief Financial Officer Christophe Le Caillec said the company intends to simplify its operations, reduce management layers and reorganize teams to improve productivity and accelerate decision-making as it prepares to use new technologies more extensively.
Job Cuts Announced Despite Strong Profits
The workforce reduction comes as American Express reports strong financial results.
The company recorded net income of $3.71 billion in the third quarter, a 28% increase compared with the same period last year. Revenue, net of interest expenses, increased 9% to approximately $20.06 billion.
Adjusted earnings reached $4.68 per share, exceeding analysts’ expectations of approximately $4.48. The company also raised its forecast for full-year adjusted earnings to between $17.60 and $17.90 per share.
Part of the reported profit growth reflected a one-time gain from the sale of American Express’s stake in Global Business Travel Group. The company recorded an after-tax gain of approximately $751 million from the sale, alongside a separate after-tax restructuring charge of $253 million.
Despite the strong results and improved earnings outlook, American Express shares fell approximately 2.5% in Friday morning trading, as investors continued to monitor rising operating costs and the company’s spending on marketing and customer benefits.
AI to Transform Internal Operations and Customer Services
American Express is also examining how artificial intelligence can change the way customers access financial and travel services.
Squeri has discussed using AI to personalize recommendations based on customers’ preferences, including restaurant reservations and travel offers. The company is also exploring the use of AI agents—tools capable of searching for offers, comparing options and carrying out tasks on behalf of users.
However, the company plans to maintain strict controls over how these tools interact with its systems.
Squeri said American Express would take a risk-based approach and permit AI agents to access its systems only through approved application programming interface (API) or Model Context Protocol (MCP) channels. The goal is to protect customers and merchants while preventing uncontrolled automated activity from disrupting services or transactions.
Although AI is expected to play a growing role in the company’s operations, American Express has not said how many of the planned job cuts will directly result from automation and how many will stem from broader restructuring.
Barclays Also Plans to Eliminate 5,000 Jobs
The announcement follows a similar move by British bank Barclays, which said on Thursday, October 22, that it plans to eliminate approximately 5,000 jobs this year, representing around 5% of its workforce.
Barclays cited technology, including artificial intelligence, as part of its effort to reduce fixed costs and improve efficiency. About 1,000 of the planned cuts had already been completed, with the remaining reductions expected by the end of the year. The bank said approximately 60% of the total cuts would affect support functions, including developer roles.
The two announcements highlight a broader shift across the financial sector, where companies are investing in automation and restructuring their workforces while continuing to generate substantial profits.
For American Express, the immediate priority is to simplify its organizational structure and improve efficiency. How much of the long-term workforce reduction will be directly attributable to artificial intelligence remains unclear.
