American Express to cut 5% of staff and incur $336 million charge as AI rollout begins

American Express will cut 5% of its global workforce and record a $336 million restructuring charge as it prepares for artificial intelligence, CEO Stephen Squeri said on the third‑quarter earnings call on Friday. The company had about 77,000 employees at the end of 2025. Chief Financial Officer Christophe Le Caillec told CNBC the move is meant to make the firm leaner, more agile and ready for AI by reducing layers and widening spans of control. He added that automating processes requires an optimal structure first. The plan mirrors a broader push in financial services, with Barclays also trimming roughly 5% of staff in a tech‑driven cost initiative. During the call, Squeri linked the charge to higher efficiency and faster innovation, noting the need to stay agile in the coming years. He spent ten minutes outlining how AI will personalize offers for cardholders while stressing that only approved agents accessing the system through API or MCP channels will be allowed, to protect customers and merchants. The quarter’s adjusted earnings per share came in at $4.68, beating analysts’ $4.48 estimate, and total revenue rose 9% to $20.06 billion, slightly below the $20.12 billion forecast. Proceeds from the sale of Amex’s stake in Global Business Travel Group helped fund the restructuring. The firm lifted its full‑year earnings guidance to $18.30‑$18.60 per share from $17.30‑$17.90, but the stock fell about 4% in afternoon trading.

Context

AI adoption is reshaping many banks, prompting them to streamline operations and cut jobs to lower costs and stay competitive.