American Express to Cut 5% of Global Workforce — 3rd Update

By Kelly Cloonan

American Express plans to cut about 5% of its global workforce, a move the company said is aimed at reducing layers and speeding up decision making.

The layoff plans came as the credit-card company reported higher third-quarter profit and revenue as its customers continue to spend more. The results prompted the company to raise its profit outlook for the year.

The stock declined 3.3% to $314.57 on Friday. Shares are down 15% this year.

The job cuts will affect roughly 3,500 roles, American Express said.

Chief Executive Stephen Squeri said the move aims to streamline the company's teams to align on key focus areas, boost efficiency and invest further in its priorities, like adding more perks for its cardmembers.

"We've 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 during a call with analysts.

American Express now forecasts earnings per share of $18.30 to $18.60 for the full year, up from $17.30 to $17.90 previously. The new outlook factors in a boost from the sale of the company's equity investment in Global Business Travel Group, part of which it is reinvesting in the restructuring plan.

The company expects adjusted earnings per share--which exclude the effects of the sale and restructuring--of $17.60 to $17.90, and said it remains on track for sales growth of 10% this year.

Analysts polled by FactSet project earnings of $17.61 a share on revenue growth of 10% for the year.

Squeri attributed the guidance raise to the company's performance so far this year.

American Express, which targets higher-income consumers, is seeing strength in billings as it acquires new customers and retains its existing card members, he said, and as it continues to improve its membership model.

The company has been investing further in its roster of membership credit cards that come with annual fees and a range of perks. For instance its Platinum card, which was refreshed last year, comes with access to premium travel perks like airport lounges and luxury hotel benefits.

Going forward, Squeri said American Express aims to improve the customer experience with the help of artificial intelligence. For example, the company is looking to use the technology to offer customers more personalized experiences in areas like its restaurant partnerships, which give certain cardmembers access to sought-after reservations and other perks.

"AI gives us the opportunity to take our value propositions much further," Squeri said.

Third-quarter profit was $3.71 billion, or $5.42 a share, compared with $2.9 billion, or $4.14 a share, a year earlier.

Adjusted earnings per share were $4.68, compared with analyst estimates of $4.48, according to FactSet.

Revenue net of interest expense rose 9% to $20.06 billion. Analysts forecast revenue of $20.12 billion.

The increase in sales was primarily due to higher card-member spending, higher net interest income on growth in card balances, and card fee growth, American Express said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

October 23, 2026 11:55 ET (15:55 GMT)