Amex to Cut 5% of Headcount Globally as Cost Pressures Mount

(Bloomberg) -- American Express Co. is cutting 5% of its headcount globally as Chief Executive Officer Steve Squeri seeks to keep a lid on the company's rising costs.

Squeri told Bloomberg TV that the company has 78,000 employees, meaning the move will affect about 3,500 jobs.

Financial firms have been cutting jobs in recent months, with some companies attributing the changes to the increased use of artificial intelligence. This week, Barclays Plc said it would eliminate 5,000 jobs. HSBC Holdings Plc is planning job reductions across its UK wealth-management business, Bloomberg News reported earlier this month, and Citigroup Inc. has also been lowering its headcount.

Squeri said on a call with analysts Friday that the job cuts reflect the desire to make the company more agile and efficient, and find ways to reduce layers and speed up decision making.

The company has also been facing consistent pressure to keep and retain its premium card members. To do that, Amex has been refreshing certain cards, adding a raft of new perks last year to its Platinum card. Earlier this month, the company said it would work with Airbnb Inc. to allow for certain luxury rentals on its travel site to count for the cardholders' annual lodging credit.

Overall, that's boosted costs. The New York-based firm said expenses climbed about 9% to $14.5 billion in the third quarter, although it was less than the $14.8 billion estimate from analysts.

Costs for member rewards were up 10% in the quarter, while marketing expenses rose 11%. Chief Financial Officer Christophe Le Caillec had previously said to expect marketing expenses to increase by around 10% in the second half of 2026 compared with last year.

"It's been highly competitive," Squeri said about the fight for premium cardholders on the call. "And our assumption is that it will remain highly competitive."

Amex shares were down 1.8% to $319.45 at 9:35 a.m. in New York trading Friday, extending this year's drop to nearly 14%.

The workforce cuts were announced after Amex posted third-quarter earnings that beat estimates, with adjusted earnings per share of $4.68 surpassing the $4.49 average analyst estimate in a Bloomberg survey.