American Express cuts 5% of its workforce to "prepare for AI," takes $336 million charge
The card company announced the cuts on its earnings call even as it raised its full-year profit forecast.
American Express is eliminating about 5% of its global workforce - roughly 4,000 jobs at a company that employed almost 77,000 people at the end of 2025 - and taking a $336 million restructuring charge, its CEO told analysts on Friday's third-quarter earnings call.
The company's finance chief said in an interview that the restructuring was meant to make American Express "leaner, more agile, and also to prepare for AI": reducing management layers so processes can be automated in coming quarters and years. On the call, the CEO said the company would not let AI assistants "run rogue" through its systems, allowing outside agents access only through approved channels.
The cuts came alongside solid results: adjusted earnings of $4.68 a share topped estimates, revenue rose 9% to $20.06 billion (just shy of forecasts), and the company raised its full-year earnings guidance to $18.30 to $18.60 a share from $17.30 to $17.90, helped by proceeds from selling its stake in Global Business Travel Group. The announcement follows a similar move by Barclays, which confirmed plans Thursday to cut 5,000 jobs - also about 5% of its staff - as banks replace repetitive roles with AI automation even while profits stay strong. See this morning's Toast & Tickers for the earnings details.
