American Express announced plans to eliminate 5% of its global workforce as part of a major restructuring initiative aimed at preparing the company for increased artificial intelligence deployment. CEO Stephen Squeri disclosed the decision during the company’s third-quarter earnings call, noting that the workforce reduction would result in a $336 million restructuring charge. The company employed nearly 77,000 people at the end of 2025.
Chief Financial Officer Christophe Le Caillec explained to CNBC that the restructuring was designed to make American Express “leaner, more agile, and also to prepare for AI.” He emphasized that the company first needed to optimize its internal processes before automating them, stating that reducing organizational layers and expanding supervisory spans would enable the company to better leverage artificial intelligence in coming periods. During his remarks to analysts, Squeri highlighted how AI would be used to personalize experiences and offers for cardholders while maintaining strict controls over automated systems.
The Amex restructuring reflects a wider pattern in the financial services sector, where institutions are increasingly using AI to replace repetitive and manual roles. British bank Barclays similarly announced plans to cut approximately 5,000 positions, also representing roughly 5% of its workforce, in another technology-driven cost initiative. These moves are occurring despite robust financial performance across the banking sector, bolstered by strong consumer spending and stable credit conditions.
American Express reported third-quarter results that exceeded Wall Street expectations, with adjusted earnings per share of $4.68 compared to the $4.48 analyst estimate. The company raised its full-year earnings guidance to a range of $18.30 to $18.60 per share from its previous target of $17.30 to $17.90. Total revenue increased 9% to $20.06 billion, slightly below the $20.12 billion forecast, partly due to recent exits from small business co-brand partnerships. Stock prices fell approximately 4% in afternoon trading following the announcement.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI