Amex to cut 5% of global workforce as cost pressure mounts

(Bloomberg) — American Express Co. is cutting 5% of its global workforce as CEO Steve Squeri seeks to contain the company’s rising costs.

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Squeri told Bloomberg TV that the company has 78,000 employees, meaning the move will affect about 3,500 jobs.

Financial firms have cut jobs in recent months, with some companies attributing the changes to the increased use of artificial intelligence. This week, Barclays Plc announced it would cut 5,000 jobs. HSBC Holdings Plc is planning job cuts in its U.K. wealth management business, Bloomberg News reported earlier this month, and Citigroup Inc. has also reduced its workforce.

Squeri said on a call with analysts Friday that the job cuts reflect a desire to make the company more agile and efficient, and to find ways to reduce levels and speed up decision-making.

The company also faces constant pressure to retain and retain its premium card members. To do this, Amex has refreshed some cards, adding a series of new benefits to its Platinum card last year. Earlier this month, the company announced it would work with Airbnb Inc. to allow certain luxury rentals on its travel site to count toward cardholders’ annual lodging credit.

Overall, this increases costs. The New York-based company said spending rose about 9% to $14.5 billion in the third quarter, although that figure was lower than the $14.8 billion estimated by analysts.

Member rewards costs increased 10% during the quarter, while marketing expenses increased 11%. Chief financial officer Christophe Le Caillec previously said he expected marketing spending to increase by around 10% in the second half of 2026 compared to last year.

“It’s been very competitive,” Squeri said of the fight for premium cardholders on the call. “And our assumption is that it will remain highly competitive.”

Amex shares were down 1.8% at $319.45 as of 9:35 a.m. Friday in New York, extending this year’s decline to nearly 14%.

Card spending

The staff cuts were announced after Amex reported third-quarter earnings that beat estimates, with adjusted earnings per share of $4.68 beating analysts’ average estimate of $4.49 in a Bloomberg survey.

The company also raised its full-year earnings forecast, saying it expects earnings per share of between $18.30 and $18.60 in 2026, according to a statement on Friday. Previously, the figure was expected between $17.30 and $17.90.

But billed revenue — a measure of transactions on credit cards and other products — totaled $454 billion in the third quarter, below the average estimate of $456.9 billion in a Bloomberg survey. The company said it terminated some co-branding deals with smaller companies, which affected its results.

This slower growth in billed business is likely a slight disappointment, according to analysts at Truist Securities, including Brian Foran.

“The result is good: Amex beats earnings and raises its full-year guidance,” analysts said in a note to clients. “The details are more mixed.”

Sale GBT

The company’s results were also affected by the sale of Amex’s stake in Global Business Travel Group Inc., which resulted in an after-tax gain of $751 million. Amex used part of the gain to fund a $253 million after-tax restructuring charge related to efficiency initiatives. The gain, net of restructuring, is excluded from the adjusted results.

“Our business momentum continues, with strong billing, new acquisitions and cardmember retention, as well as excellent credit quality,” Squeri said in the release.

The company also faces a $350 million fine due to anti-money laundering violations. The U.S. Office of the Comptroller of the Currency and the Federal Reserve initiated enforcement actions against Amex earlier this month, alleging deficiencies in the company’s anti-money laundering systems.

Amex said at the time that the penalty would not affect its previously published 2026 guidance or 2027 outlook, and that the orders did not impose an asset cap on the company.

(Updates with cost details from fourth paragraph, actions in ninth.)

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