American Express is cutting 5% of its workforce to 'prepare for AI'

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1. 1h ago

   American Express Cuts 5 Percent of Workforce to Prepare for AI

   American Express plans to reduce its global workforce by 5 percent to streamline operations and adapt to artificial intelligence. CEO Stephen Squeri announced the restructuring alongside third-quarter financial results. Reports vary on the exact headcount impact, with figures citing both 3,500 and approximately 3,800 jobs affected. The company is taking a 336 million dollar restructuring charge for the quarter. Despite the layoffs, American Express reported strong profits driven by customer demand for products like the 895 dollar Platinum Card, prompting leadership to lift its 2026 profit forecast. Company shares dropped following the announcement.

   Why it matters

   The layoffs reflect a broader corporate trend where major firms shift investments and hand operations over to artificial intelligence. Competitors such as Microsoft and Barclays are also cutting jobs amid the technological shift. For American Express, the reductions aim to curb expenses while the payment industry absorbs rapid automation.

   What is confirmed

   • American Express is cutting 5 percent of its global workforce to prepare for AI.
   • CEO Stephen Squeri stated the company is taking a 336 million dollar restructuring charge in the quarter.
   • American Express raised its 2026 profit forecast and reported rising profits.

   Still unconfirmed

   • The workforce reduction will total approximately 3,800 jobs.
   • The workforce reduction will total roughly 3,500 jobs.

   What to watch next

   • Updates on the exact number of job cuts from corporate leadership
   • Further statements from American Express regarding its AI integration timeline
   • Stock performance and quarterly financial filings following the restructuring charge
   Sources used for this update (14)

   1. help.naver.com — Futures Flat As Oil Rebounds After Trump's "Energy Ceasefire" Unravels, Memory Stocks Slide | ZeroHedge
   2. CNBC — American Express is cutting 5% of its workforce to 'prepare for AI'
   3. WSJ — American Express to Cut 3,500 Jobs
   4. Reuters — AmEx lifts 2026 profit forecast, plans to cut 5% of workforce
   5. Bloomberg.com — Amex to Slash 5% of Headcount as CEO Seeks to Reduce Expenses
   6. ABC News - Breaking News, Latest News and Videos — American Express profit jumps as customers stick with the $895 Platinum Card
   7. Indianapolis Business Journal — American Express profits rise as company plans to cut workforce by 3,500 employees
   8. Investopedia — American Express to Lay Off 5% of Workforce to ‘Prepare for AI’
   9. WSJ — Amex Stock Drops After Company Joins List of Those Cutting Jobs
   10. Reuters — AmEx CEO says company to cut 5% of total workforce
   11. en.as.com — The latest AI warning sign? A troubling trend for workers as Microsoft, Barclays and American Express are cutting jobs - AS USA
   12. www.manilatimes.net — American Express cutting 5% of global workforce | The Manila Times
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