American Express to Cut 5% of Workforce Amid AI Transition
Written with artificial intelligence.
American Express is reducing its workforce by 5%, translating to thousands of job cuts, to streamline operations in preparation for increased artificial intelligence utilization. The company will incur a $336 million restructuring charge in the third quarter.
Workforce Reduction and Restructuring
American Express (Amex) announced plans to cut 5% of its global workforce as part of a strategy to enhance efficiency and adopt artificial intelligence in its operations. This decision follows the company’s third-quarter earnings call, where CEO Stephen Squeri revealed the firm will take a $336 million restructuring charge. As of the end of 2025, Amex employed nearly 77,000 individuals.
Goals for Automation
CFO Christophe Le Caillec emphasized that the restructuring aims to create a "leaner, more agile" organization. He stated, "You don’t want to automate processes that are not optimally structured," indicating that reducing layers within the company will facilitate better automation and integration of AI in the coming years.
Industry Trends
This move reflects a wider trend in the financial services sector, where institutions are increasingly replacing repetitive roles with AI technology. Recently, Barclays announced similar job cuts, also reducing its workforce by 5%. Both companies are pursuing these strategies despite the current profitability in the sector due to strong consumer spending and credit resilience.
Financial Performance
In the earnings report, Amex posted adjusted earnings per share of $4.68, surpassing analyst expectations of $4.48. The company has raised its full-year earnings guidance to a range of $18.30 to $18.60 per share, aided by proceeds from its sale of a stake in Global Business Travel Group, which will contribute to the restructuring costs. Despite the positive earnings, Amex’s shares declined by approximately 4% in afternoon trading.