NEW YORK — American Express will eliminate about 5% of its global workforce and record a $336 million pre-tax restructuring charge ($253 million after tax), Chief Executive Stephen Squeri disclosed on Friday, October 23, during the company's third-quarter earnings call, CNBC reported. The company had nearly 77,000 employees at the end of 2025, which puts the reduction at roughly 3,500 jobs.
Chief Financial Officer Christophe Le Caillec told CNBC the restructuring is meant to make American Express "leaner, more agile, and also to prepare for AI," by reducing management layers and increasing spans of control. "You don't want to automate processes that are not optimally structured," he said. The company has not said that AI has already replaced the roles being eliminated; executives describe the move as flattening the organisation first, so automation can absorb work in coming quarters and years.
The announcement came alongside results that beat profit expectations. Adjusted earnings were $4.68 a share against the $4.48 average estimate of analysts surveyed by LSEG, and total revenue rose 9% to $20.06 billion, slightly below the $20.12 billion forecast, CNBC reported. Net income rose 28% to $3.7 billion, according to the company's earnings release.
American Express also raised its full-year 2026 earnings guidance to $18.30 to $18.60 a share on an unadjusted basis, up from $17.30 to $17.90, helped by proceeds from selling its stake in Global Business Travel Group, which also funded part of the restructuring. Shares fell roughly 4% in Friday afternoon trading, CNBC reported. For diaspora readers working in US finance and back-office roles, the announcement is the latest sign that large employers are restructuring around AI even in profitable quarters.