American Express to Cut About 5% of Workforce

American Express will cut about 5% of its global workforce and booked a US$336 million restructuring charge in the third quarter, even as it raised its full-year 2026 earnings forecast on Friday, International Business Times reported. Yahoo Finance said the shares fell about 3% in Friday trading.

The card issuer now expects 2026 earnings of US$18.30 to US$18.60 a share on a reported basis, according to BigGo Finance’s account of the results and earnings call. On an adjusted basis, it put the range at US$17.60 to US$17.90.

Profit and spending

Revenue rose 9% from a year earlier, Yahoo Finance and BigGo Finance reported. Adjusted earnings per share climbed 13% to US$4.68, beating estimates, according to Yahoo Finance. The Associated Press reported net profit of US$3.71 billion, up 28%.

Reported earnings per share came to US$5.42, up 31%, BigGo Finance said. That figure included a gain of US$1.11 a share from the sale of Global Business Travel and the restructuring charge of US$0.37 a share. It also reflected a legal reserve increase of US$0.51 a share that, BigGo said, includes a civil money penalty from the Office of the Comptroller of the Currency.

Total billed business rose 8%, BigGo reported, with US consumer spending up 9.4% and international spending up 11%. Card fee growth reached a record 17% on an FX-adjusted basis. Provision expense was US$985 million, including a US$211 million reserve release.

Restructuring tied to AI

Chief Executive Stephen Squeri told analysts the company has momentum but needed to become “a more agile and efficient organization” to speed up innovation, BigGo reported. He added that the move should give the company more capacity to invest in its business priorities, according to International Business Times.

Chief Financial Officer Christophe Le Caillec told CNBC that leadership wants to “reduce layers and increase spans of controls” so the company can automate and use AI in the coming years, International Business Times reported. A company spokesperson put the cuts at about 3,500 roles, according to Yahoo Finance, while the Associated Press reported the reduction at about 4,000 employees.

What’s next

American Express kept its full-year revenue growth forecast at 10%, BigGo reported. Le Caillec said growth in variable customer engagement spending will slow significantly in the fourth quarter as the company laps its Platinum card refresh. The company gave no 2027 guidance, but Le Caillec said mid-teens earnings per share growth remains its ambition.

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