American Express to cut 3,500 jobs despite 28% profit surge

# American Express to Cut 3,500 Jobs Despite Strong Profits and Rising Revenue

American Express plans to eliminate approximately 3,500 jobs worldwide, representing about 5% of its global workforce, as the financial services company seeks to streamline operations, improve efficiency and prepare for its next phase of growth.

The planned reductions come despite strong financial results and growing customer spending, placing the company among major employers announcing workforce cuts amid efforts to control costs and adapt to changing business demands. Other companies undertaking job reductions include Barclays, Volvo, eBay and Electronic Arts.

According to the Associated Press, the layoffs represent American Express’ first major workforce reduction in roughly a decade. The New York-based company employed nearly 77,000 people at the end of 2025.

American Express reported net profit of $3.71 billion for the third quarter of 2026, a 28% increase from the same period a year earlier. Earnings reached $5.42 per share, while revenue rose 9% to $20.06 billion, according to its earnings report.

The company recorded a $336 million pretax restructuring charge during the quarter. Chief Executive Officer Stephen Squeri told analysts that the job cuts formed part of a broader strategy to simplify operations, increase productivity and direct investments toward key 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, according to reporting cited by The Wall Street Journal.

American Express has maintained that the reductions are intended to improve operational efficiency rather than respond to deteriorating business performance. The company is also adjusting its structure as artificial intelligence changes how work is performed across the financial services industry.

## Company prepares for AI-driven changes

Chief Financial Officer Christoph Le Caillec told CNBC that the restructuring was designed to make the company “leaner, more agile, and also to prepare for AI.”

The comments reflect a broader corporate focus on improving productivity and adapting to emerging technologies. For American Express, the challenge is to manage operating costs while continuing to invest in innovation and maintain its position in the competitive premium credit card market.

The company’s latest financial results indicate that customer demand remains strong. New cardmember additions, customer retention and increased spending have contributed to its performance, providing a contrast to the workforce reductions.

American Express has also been generating additional revenue through changes to its premium card offerings.

Last year, the company revamped its Platinum Card with additional benefits while raising its annual fee from $695 to $895. Despite concerns over the $200 increase, American Express said nearly all customers who transitioned to the higher-fee card chose to retain it.

Net card fees increased by more than $400 million from a year earlier, reflecting contributions from annual fees and other card-related revenue.

## Customer spending continues to rise

Spending by American Express cardmembers also increased during the third quarter. The average cardmember spent $6,375 using their cards over the three-month period, equivalent to approximately $2,125 per month.

That figure represented a 5% increase compared with the same quarter last year. Le Caillec attributed part of the rise to inflation, while the company also cited an increase in the number of transactions per cardmember as a factor contributing to higher spending.

The results highlight the strength of American Express’ customer base and its ability to generate revenue from premium products, even as the company pursues cost-cutting measures.

The restructuring therefore comes at a time when the company is seeking to balance continued growth with greater operational efficiency. Its plans suggest that management believes changes to staffing and internal processes are necessary to support future investments in technology and innovation.

## American Express raises earnings forecast

Alongside its quarterly results, American Express increased its full-year adjusted earnings outlook. The company now expects adjusted earnings of $17.60 to $17.90 per share, compared with its previous forecast of $17.30 to $17.90 per share.

The higher forecast reflects management’s expectations for continued business performance despite the broader economic and technological changes affecting the financial services sector.

The planned job cuts underscore how companies can pursue workforce restructuring even while reporting rising profits and revenue. For American Express, the stated objective is to improve productivity, control expenses and prepare its operations for an increasingly technology-driven business environment.