American Express announced a significant workforce reduction, cutting 5% of its global staff as the company gears up for increased automation through artificial intelligence. The decision involves a $336 million restructuring charge, according to CEO Stephen Squeri.
The financial services giant, which employed nearly 77,000 people at the end of 2025, is aiming to streamline its operations to become more agile. Chief Financial Officer Christophe Le Caillec explained that the restructuring is designed to optimize processes before automating them. "You don't want to automate processes that are not optimally structured, " Le Caillec noted, emphasizing the need to "reduce layers and increase spans of controls" to effectively implement AI in the future.
This move by Amex mirrors a broader trend in the financial sector, where companies are increasingly turning to technology to replace repetitive tasks. Just a day earlier, Barclays announced a similar 5% reduction in its workforce, citing tech-driven cost initiatives. Despite these job cuts, the sector is currently benefiting from strong profits driven by consumer spending and stable credit.
During the earnings call, Squeri highlighted the company's strong performance, with quarterly results surpassing Wall Street expectations. Amex reported adjusted earnings per share of $4.68, beating the $4.48 average estimate from analysts as per LSEG data. The company also raised its full-year earnings guidance to between $18.30 and $18.60 per share, up from the previous range of $17.30 to $17.90.
Part of the financial uplift came from the sale of Amex's stake in Global Business Travel Group, which contributed to the restructuring plan. Total revenue, which increased by 9% to $20.06 billion, fell slightly short of Wall Street's $20.12 billion forecast. Executives attributed some of the revenue shortfall to recent exits from small business co-brand partnerships.
Squeri devoted a significant portion of his remarks to the potential of AI, particularly in enhancing personalized experiences for Amex cardholders. He assured stakeholders that while AI will be integrated into customer interactions, the company will maintain strict controls. "We need to protect our customers [and] merchants, " Squeri stated, adding that only approved agents will have access to Amex systems through secure channels.
Despite the positive earnings report, shares of American Express fell by approximately 4% in afternoon trading. The market reaction underscores the mixed sentiment surrounding the company's strategic shift towards AI and the associated workforce reductions.
