The card company is reducing its workforce by 4.5% as it aims to become more “agile and efficient” amid increased use of artificial intelligence, CEO Stephen Squeri said.
American Express plans to reduce its headcount by nearly 4.5% as part of a restructuring amid intensified competition and increased industry use of artificial intelligence.
The New York City-based card company will cut about 3,500 of its roughly 78,000 workers worldwide, a spokesperson for the company said, in conjunction with announcing its third-quarter earnings Friday. The spokesperson declined to provide additional details.
Amex CEO Stephen Squeri said the workforce contraction was focused on streamlining the company’s operations, bolstering productivity and speeding up decision-making.
“We've got good momentum, but to accelerate innovation and win over the next few years, we needed to become a more agile and efficient organization,” he told analysts on a Friday earnings call.
Company executives on the call provided few additional details about the employee job cuts, other than Squeri explaining how he asked managers this year to identify the options for improving operations.
The move to cut costs comes as competition continues to ramp up. Large banks that issue cards, including JPMorgan Chase, and their card network partners Visa and Mastercard, continue to challenge Amex in the premium consumer card market, with improved loyalty programs and airport lounge offerings.
On the commercial front, new entrants, including Brex and Ramp, are intensifying competition for corporate customers, including with the use of AI agents. Brex was acquired this year by Capital One, which also completed a purchase of card rival Discover last year.
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