American Express announced a significant workforce reduction affecting 5% of its employees, coupled with a $336 million restructuring charge, according to CEO Stephen Squeri during the company’s third-quarter earnings call. The firm, which employed nearly 77,000 people at the end of 2025, is implementing the cuts as part of a broader efficiency initiative. Chief Financial Officer Christophe Le Caillec stated the restructuring aims to make the company “leaner, more agile” while positioning it to capitalize on artificial intelligence technologies. The executive explained that the company plans to reduce organizational layers and increase management span to create an optimal structure before automating processes with AI in coming periods.
The American Express move reflects a wider trend in the financial services sector, where institutions are increasingly deploying AI to replace routine tasks and reduce headcount. Barclays similarly announced plans to eliminate approximately 5,000 positions—roughly 5% of its workforce—in a parallel initiative driven by technological advancement. Both actions are occurring amid strong financial performance in the sector, buoyed by robust consumer spending and stable credit conditions.
Squeri devoted substantial remarks to the company’s AI strategy, emphasizing its role in personalizing customer experiences and credit card offers. However, he stressed that American Express will maintain strict controls over AI implementation, ensuring that automated agents can only access company systems through approved security protocols. The CEO described the restructuring as necessary to accelerate innovation and enhance organizational agility moving forward.
The company’s latest quarterly results exceeded Wall Street expectations, with adjusted earnings per share reaching $4.68 against an analyst consensus of $4.48. American Express raised its full-year earnings guidance to a range of $18.30 to $18.60 per share on an unadjusted basis, revising upward from prior guidance of $17.30 to $17.90. Revenue increased 9% to $20.06 billion, though slightly missing the $20.12 billion forecast. Stock price declined approximately 4% in afternoon trading following the announcement.
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