Workforce Reduction and Financial Restructuring
American Express is cutting 5% of its global headcount as chief executive officer Steve Squeri seeks to keep a lid on the company’s rising costs. Squeri told Bloomberg TV that the firm currently employs 78,000 people, meaning the restructuring move will affect approximately 3,500 jobs across the organization. The workforce reduction plan was disclosed alongside quarterly earnings figures published by The Straits Times. Squeri explained on a call with analysts that the job cuts reflect a strategic desire to make the financial institution more agile and efficient, reduce operational layers, and speed up internal decision-making processes.
Third-Quarter Earnings and Guidance Update
The workforce cuts were announced after American Express posted third-quarter earnings that surpassed Wall Street estimates. The company reported adjusted earnings per share of US$4.68, outperforming the US$4.49 average analyst estimate in a Bloomberg survey. Management also raised its full-year earnings guidance, stating it now expects earnings per share to land between US$18.30 and US$18.60 for 2026, up from the previously projected range of US$17.30 to US$17.90. However, billed business—a critical metric measuring transactions on credit cards and other products—came in at US$454 billion for the quarter, falling slightly short of the US$456.9 billion average analyst estimate.
Industry Trends and Regulatory Penalties
The financial sector has seen widespread staff reductions in recent months, with several major banking institutions trimming personnel and attributing some adjustments to increased automation and the integration of artificial intelligence tools. Earlier in the week, Barclays announced plans to eliminate 5,000 jobs, while HSBC Holdings and Citigroup have similarly moved to lower their headcount numbers. In addition to restructuring initiatives, American Express is confronting a US$350 million regulatory fine stemming from anti-money-laundering compliance deficiencies brought by the US Office of the Comptroller of the Currency and the Federal Reserve. Despite the financial penalty, company executives confirmed that the enforcement actions will not disrupt the revised full-year 2026 guidance or impose an asset cap on the firm.