American Express plans to eliminate approximately 5% of its global workforce as executives prepare for greater use of artificial intelligence, despite reporting higher revenue and profits in the third quarter.
By yourNEWS Media Newsroom
American Express announced Friday, Oct. 23, that it will eliminate approximately 3,500 jobs worldwide as part of a restructuring initiative aimed at reducing management layers, improving operational efficiency and preparing the financial services company for expanded use of artificial intelligence.
The cuts represent approximately 5% of the company’s global workforce and come despite strong third-quarter financial results, including a 9% increase in revenue and higher earnings.
Chief Financial Officer Christophe Le Caillec told CNBC that the restructuring was designed to make American Express “leaner, more agile, and also to prepare for AI,” reflecting the company’s plans to incorporate automation and emerging technologies into its operations.
According to Reuters, the layoffs are part of a broader corporate strategy to reduce organizational complexity and accelerate decision-making while investing in artificial intelligence.
American Express recorded a $336 million pretax restructuring charge during the third quarter to account for the planned workforce reductions.
Chief Executive Stephen Squeri confirmed the restructuring during the company’s earnings conference call, explaining that the changes were intended to position American Express for continued innovation.
“We have got good momentum, but to accelerate innovation, and win over the next few years, we needed to become a more agile and efficient organization,” Squeri said.
The company’s third-quarter earnings call outlined plans to simplify internal operations, streamline management structures and direct more resources toward technology development and customer services.
Squeri said artificial intelligence is already improving productivity and enabling the company to automate processes previously handled by employees.
“There has been a lot of talk about how companies are using AI to increase productivity, automate processes, and generally make their organizations more efficient,” he said. “We are using AI to do all of those things too.”
American Express has introduced AI-powered tools to help customer service employees retrieve information, analyze customer needs and resolve disputes more efficiently.
The company has also begun deploying conversational AI voice agents, while developing systems intended to anticipate customers’ needs and deliver personalized financial services.
Executives emphasized that human employees will continue to play an important role, particularly in situations requiring judgment and personalized assistance.
The restructuring follows a period of financial growth for American Express, which reported third-quarter revenue of $20.1 billion, up from approximately $18.4 billion a year earlier.
Net income climbed 28% to $3.7 billion, compared with $2.9 billion during the same quarter in 2025.
Adjusted earnings reached $4.68 per share, exceeding Wall Street analysts’ expectations of approximately $4.48.
Customer spending also remained strong, with total billed business increasing 8% to $454 billion.
Travel and entertainment spending rose 10%, while airline purchases increased 13% and restaurant spending climbed 9%.
The results reflect continued spending by American Express customers, particularly higher-income cardholders, despite economic uncertainty and pressure on household budgets.
Following the earnings announcement, the company raised its full-year adjusted earnings forecast to between $17.60 and $17.90 per share.
However, expenses also increased 9% to $14.5 billion, reflecting higher marketing expenditures and investments in cardmember benefits.
American Express shares declined following the announcement as investors evaluated the company’s spending levels, restructuring expenses and future growth prospects.
The New York Post reported that the company’s shares fell approximately 3.8% during Friday’s trading.
The layoffs place American Express among a growing number of major financial institutions reducing their workforces while expanding their use of artificial intelligence.
Barclays announced plans this week to eliminate approximately 5,000 positions, while other financial companies, including HSBC and Citigroup, have also pursued workforce reductions.
According to Fast Company, the American Express restructuring reflects a broader shift across financial services as companies invest in automation to improve efficiency and reduce operating costs.
Research firm Challenger, Gray & Christmas reported that artificial intelligence had been cited in more than 120,000 announced job cuts through September 2026, illustrating the increasing role of emerging technology in corporate workforce decisions.
However, companies frequently cite multiple reasons for layoffs, and not all positions eliminated during AI-related restructuring are directly replaced by automated systems.
American Express has not publicly specified which departments, locations or individual job categories will be most affected by the cuts.
The company employed approximately 76,800 people at the end of 2025, including roughly 25,900 in the United States and 50,900 internationally.
Executives said the restructuring would reduce organizational layers and allow the company to concentrate resources on strategic priorities, including artificial intelligence, digital services and customer engagement.
The announcement underscores how major corporations are pursuing workforce reductions alongside expanding profits and continued investment in new technologies.
For American Express, the planned elimination of thousands of positions represents a significant operational change as the company seeks to integrate artificial intelligence more extensively into its business while maintaining growth in its credit card and financial services operations.
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