Amex to cut 3,500 jobs globally despite raising 2026 profit forecast

American Express is cutting about 5 percent of its global workforce, affecting around 3,500 employees, as chief executive officer Steve Squeri seeks to control rising expenses and streamline operations, even as the company raises its full-year earnings forecast after reporting better-than-expected third-quarter results.According to Bloomberg, Squeri told Bloomberg TV that the company has around 78,000 employees globally. Speaking during a call with analysts on Friday, he said the job cuts were aimed at making the company more agile and efficient by reducing management layers and speeding up decision-making.The move comes amid a broader wave of workforce reductions across the financial services sector, with companies seeking to improve efficiency and, in some cases, citing the growing use of artificial intelligence.Barclays said this week it would eliminate 5,000 jobs, while HSBC is planning reductions across its UK wealth-management business. Citigroup has also been reducing its workforce.Amex announced the cuts after reporting adjusted earnings of $4.68 per share for the third quarter, beating the average analyst estimate of $4.49 in a Bloomberg survey. The company also raised its full-year 2026 earnings forecast to between $18.30 and $18.60 per share, from its earlier projection of $17.30 to $17.90.However, the company's billed business, which measures transactions on its credit cards and other products, came in at $454 billion during the quarter, below the average analyst estimate of $456.9 billion. Amex said it had exited certain small-business co-brand deals, affecting the results.Analysts at Truist Securities, including Brian Foran, described the results as mixed, noting that the earnings beat and improved guidance were positive but that slower growth in billed business was a disappointment.The company reported third-quarter expenses of $14.5 billion, an increase of about 9 percent, although the figure was below analysts' estimate of $14.8 billion. Rising costs have added to the pressure on management to improve operational efficiency while sustaining business growth.Amex's results were also affected by the sale of its equity interest in Global Business Travel Group Inc, which generated an after-tax gain of $751 million. The company used part of the proceeds to fund a $253 million after-tax restructuring charge linked to efficiency initiatives. The gain, net of the restructuring charge, was excluded from adjusted results.“Our business momentum continues, with strength in billings, new acquisitions and card member retention, and excellent credit quality,” Squeri said in a statement.The company has also been investing in its premium-card offerings. Last year, it introduced several new benefits for its Platinum card, and earlier this month announced a partnership with Airbnb that will allow certain luxury rentals booked through its travel site to qualify for cardholders' annual lodging credit.Chief financial officer Christophe Le Caillec had previously said marketing expenses were expected to rise by around 10 percent in the second half of 2026 compared with the same period last year.Separately, Amex faces a $350 million fine following enforcement actions by the US Office of the Comptroller of the Currency and the Federal Reserve over alleged deficiencies in its anti-money-laundering systems. The company said the penalty would not affect its previously issued full-year 2026 earnings guidance or its 2027 outlook. The regulatory orders also do not impose an asset cap on the company.You use AI every day. Now get your AI Quotient. Take the AIQ test.