American Express Is Cutting 3,500 Jobs Globally--Here's Why

American Express is cutting around 3,500 jobs globally, or about 5% of its workforce, as the credit card giant looks to streamline operations, improve efficiency and prepare for wider adoption of artificial intelligence (AI). The move comes even as the company reported a sharp rise in quarterly profit, highlighting how workforce reductions are increasingly being driven by organisational restructuring rather than weakening business performance.

The New York-based company reported a third-quarter net profit of $3.71 billion, up 28% from a year earlier. Revenue rose 9% to $20.06 billion, while earnings stood at $5.42 per share, according to its earnings release.

American Express had nearly 77,000 employees at the end of 2025. The latest move marks its first major workforce reduction in roughly a decade, according to the Associated Press. The company recorded a $336 million pre-tax restructuring charge in the third quarter.

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Why Is American Express Cutting Jobs?

Chief Executive Officer Stephen Squeri told analysts that the job cuts were part of a broader strategy to make the organisation more agile and efficient while directing resources towards business priorities.

“We have got good momentum, but to accelerate innovation and win over the next few years, we needed to become a more agile and efficient organisation,” Squeri said, as quoted by The Wall Street Journal.

Chief Financial Officer Christoph Le Caillec also told CNBC that the restructuring was aimed at making American Express leaner, more agile, and also to prepare for AI.

The company plans to reduce organisational layers and widen spans of control, creating a structure better suited to automation and the use of AI tools in the coming quarters and years.

How AI Fits Into American Express' Strategy

AI is emerging as a key part of American Express' plans to improve customer experience and operational efficiency. During the company's analyst call, Squeri discussed how the technology could help personalise offers and services for cardholders.

However, he stressed that the company would maintain safeguards around AI-powered systems, particularly when it comes to customer and merchant information.

“We need to protect our customers [and] merchants, and we're only going to allow agents to access our systems that are either approved through API or MCP channels,” he said.

American Express' restructuring comes amid healthy business performance, supported by customer additions, cardmember retention and higher spending.

The company raised the annual fee on its Platinum Card from $695 to $895 after introducing additional benefits last year. Net card fees increased by more than $400 million from a year earlier, while most customers who moved to the higher-fee card reportedly chose to retain it.

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Average spending per cardmember reached $6,375 in the third quarter, up 5% year-on-year, with the CFO attributing part of the increase to inflation and higher transaction volumes.

American Express has also raised its full-year adjusted earnings forecast to $17.60-$17.90 per share, from its earlier range of $17.30-$17.90.

The layoffs come amid a wider wave of corporate restructuring. Barclays has announced plans to cut 5,000 jobs, while eBay plans to reduce its workforce by around 1,000 employees. Volvo has also announced 2,500 job cuts following earlier reductions.

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