American Express Announces Layoffs of 3,500 Employees
American Express announced it will lay off approximately 3,500 employees globally, accounting for about 5% of its total workforce. The company currently has around 78,000 employees worldwide.
The layoff plan was announced on October 23, alongside the third-quarter performance results. The company reported a net profit of $3.71 billion for the third quarter, a year-on-year increase of 28%. Adjusted earnings per share were $4.68, exceeding market expectations.
The company raised its full-year adjusted earnings per share guidance for 2026 to between $17.60 and $17.90. Third-quarter expenses totaled $14.5 billion, a 9% year-on-year increase. Membership rewards costs rose by 10%, and marketing expenses increased by 11%.
CEO Stephen Squeri stated that the layoffs aim to streamline the organization, accelerate decision-making, and prepare for automation and artificial intelligence. The company has set aside approximately $336 million for restructuring costs.
In the same week, Barclays announced layoffs of 5,000 employees. American Express's stock price fell by about 2.5% on the same day. The company stated that its business still shows growth momentum, with cardholder spending increasing by about 8%.
In terms of market mechanisms, rising costs are driving cost control. The beneficiaries are the operating profits after efficiency improvements, while the pressured group consists of employees in management and execution positions who are being laid off.
Source: Public Information
ABAB AI Insight
American Express announced layoffs alongside profit growth and rising costs, aiming to reduce management levels and prepare for automation. CFO Christophe Le Caillec directly linked this to preparations for artificial intelligence.
On the capital path, the company will account for restructuring costs in the current quarter while raising its full-year profit guidance. The increase in expenses primarily comes from rewards and marketing, with layoffs intended to offset some cost pressures.
This is similar to other financial institutions proactively adjusting their workforce structure during good performance. The current phase involves simultaneous cost control and technology investment.
Essentially, this is about technological substitution. Reducing organizational levels creates conditions for subsequent automation while shifting some functions from human labor to system processing.
ABAB News · Cognitive Law
Profit growth does not prevent workforce restructuring
Rising costs trigger efficiency restructuring
Reducing management levels paves the way for automation