American Express plans to eliminate approximately 5% of its global workforce, chief executive Stephen Squeri told analysts during the company’s earnings call on Friday, October 23, Reuters reported.
The company recorded a $336 million pretax restructuring charge in the third quarter, according to its earnings presentation.
Barron’s reported that the reductions are intended to improve organisational efficiency and make room for further investment.
American Express reported quarterly net income of approximately $3.7 billion, compared with $2.9 billion a year earlier. Revenue net of interest expense increased 9% to $20.1 billion.
Billed business, its measure of spending on American Express-issued cards, rose 8% to $454 billion. The company attributed revenue growth to increased customer spending, higher net interest income and stronger card fees.
The workforce announcement concerns prospective reductions, rather than confirmation that the departures have already occurred.
