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American Express is cutting 5% of its workforce, and its CFO says AI is part of the reason

The card company took a $336 million restructuring charge in a quarter that beat adjusted profit estimates and lifted its full-year outlook.

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Why it matters: Amex is cutting jobs in a quarter when profit rose 28%, funding the charge with part of a one-time gain, and investors had been watching its costs.

For information only, not investment advice. Prices delayed.

Tickers: AXP

Amex's stake-sale gain more than covered its layoff charge
Sainteur chart · Data: American Express earnings release; CNBC

American Express ($AXP) shares were down 3.68% at $313.22 as of Oct 23, 4:00 PM ET, on the day the card company said it will cut 5% of its global workforce, about 3,500 jobs, AP and Reuters reported. AP reported that these are its first major job cuts in roughly a decade, and that they landed in a quarter when profit rose 28% to $3.71 billion.

Amex is taking a $336 million restructuring charge tied to the cuts, CEO Stephen Squeri told analysts on the third-quarter call, CNBC reported. Squeri said "we needed to become a more agile and efficient organization," according to a transcript. AP says he told investors the layoffs were about efficiency, not a downturn in business. CFO Christophe Le Caillec told CNBC the restructuring was to make the company "leaner, more agile, and also to prepare for AI."

The number worth a second look: Amex's earnings release says part of its $982 million pretax gain from selling its stake in Global Business Travel Group was used to fund restructuring. Consolidated expenses were $14.5 billion, up 9%. Rising costs had been a concern for investors, AP noted.

The business itself held up. Adjusted EPS of $4.68 beat the $4.48 analysts expected, according to LSEG via CNBC. Revenue rose 9% to $20.06 billion, slightly below the $20.12 billion forecast. Amex says nearly all customers moved to its $895 Platinum Card have kept it, AP reported, and net card fees rose by more than $400 million. Amex raised its full-year EPS guidance to $18.30 to $18.60 ($17.60 to $17.90 adjusted).

Reuters reported Friday that the stock is down 12% year to date and has underperformed the S&P 500. Amex isn't alone: Barclays confirmed Thursday it will trim 5,000 jobs, also roughly 5% of its staff, CNBC reported.

Sources

  1. American Express Q3 2026 earnings release (Form 8-K, Exhibit 99.1), American Express (SEC Form 8-K, Exhibit 99.1)
  2. American Express (AXP) Q3 2026 earnings call transcript, StockAnalysis.com (earnings call transcript)
  3. American Express is cutting 5% of its workforce to 'prepare for AI', CNBC
  4. AmEx lifts 2026 profit forecast, plans to cut 5% of workforce, Reuters (via Investing.com)
  5. American Express profits rise; company plans to cut workforce by 5%, or about 3,500 employees, Associated Press (via The Seattle Times)

Tags: layoffs · earnings · ai · banks