American Express Cuts 3,500 Jobs as Q3 Profit Jumps 28%
Updated
Updated · Baltimore Sun · Oct 23
American Express Cuts 3,500 Jobs as Q3 Profit Jumps 28%
3 articles · Updated · Baltimore Sun · Oct 23
Summary
American Express said it will cut 5% of its workforce—about 3,500 jobs—in its first major layoffs in roughly a decade, framing the move as an efficiency push rather than a response to weaker demand.
Q3 profit rose to $3.71 billion from a year earlier, while adjusted earnings of $4.68 a share beat Wall Street estimates and prompted AmEx to lift the low end of its full-year forecast to $17.60-$17.90.
The stronger results were driven by higher card spending and richer fee income after AmEx shifted most Platinum members to an $895 annual fee from $695; net card fees climbed by more than $400 million.
Customer spending also stayed firm among AmEx's affluent base, with average quarterly spend per cardmember up 5% to $6,735 and travel and entertainment spending up 10%, including a 13% rise in airline-ticket purchases.
The cuts come as AmEx faces investor concern over rising operating costs and expensive rewards competition from rivals including Capital One and JPMorgan Chase.