Highlights
- American Express plans to cut 5% of its global workforce, affecting approximately 3,500 employees.
- The company raised its 2026 adjusted earnings forecast to $17.60-$17.90 per share after reporting stronger-than-expected third-quarter results.
- Its quarterly profit rose 28% to $3.71 billion, while customer spending increased 5% year over year.
American Express plans to cut about 3,500 jobs worldwide as it looks to reduce costs and streamline its operations, even as the credit card company raised its profit outlook following strong third-quarter results.
The company will reduce its global workforce by 5%, Chairman and CEO Stephen Squeri told analysts during a call after its earnings were released Friday. With approximately 78,000 employees, the reduction would affect around 3,500 positions.
Squeri said the cuts are intended to make the business more efficient and agile by reducing management layers and speeding up decision-making, Bloomberg News reported.
The move comes as financial institutions face pressure to control costs and reshape their operations. Barclays has announced plans to cut about 5,000 jobs, while HSBC is reducing roles in its UK wealth management business. Some banks have linked workforce reductions to the adoption of artificial intelligence, although American Express has not specifically attributed its announced cuts to AI.
Strong earnings and higher card fees
American Express reported a third-quarter profit of $3.71 billion, up 28% from a year earlier. Earnings were $5.42 per share, including a one-time gain from the sale of its stake in Global Business Travel Group. Excluding that gain, adjusted earnings were $4.68 per share, beating Wall Street expectations.
The company has benefited from customers spending more on their cards and paying higher annual fees. Last year, American Express raised the annual fee on its Platinum Card from $695 to $895 while adding new benefits.
The company said nearly all cardmembers who had been moved to the higher-fee Platinum Card had kept it. Net card fees increased by more than $400 million compared with a year earlier.
American Express customers spent an average of $6,735 on their cards during the quarter, or $2,245 a month, up 5% from the previous year.
Chief Financial Officer Christophe Le Caillec said some of the increase reflected inflation, including higher travel costs. The company also reported an increase in the number of transactions per cardmember.
2026 profit forecast raised
American Express raised its 2026 adjusted earnings forecast to between $17.60 and $17.90 per share, lifting the lower end from its previous range of $17.30 to $17.90.
The company’s third-quarter earnings beat expectations, but slower growth in its network volume compared with the previous quarter disappointed investors. Its shares fell 2.4% in premarket trading Friday.
The planned workforce reduction underscores how American Express is seeking to improve efficiency even as spending among its customers remains strong and its earnings outlook improves.
