Bad newsAmerican Express Cuts 5% of Staff on the Day It Raises Profit Forecast
American Express will eliminate about 5% of its global workforce and booked a $336 million restructuring charge on the day it reported record quarterly revenue and raised its 2026 earnings guidance, funded by a one-off asset sale.
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American Express said on 23 October that it will cut about 5% of its global workforce, in the same results release in which it reported record revenue and raised its profit forecast. Reuters reports the job cuts alongside the higher outlook. CNBC reports under a headline that frames the cuts as preparation for artificial intelligence.
The numbers on the day
The company’s earnings release, filed with the SEC, shows third-quarter revenue of $20.1 billion, up 9%, and net income of $3.7 billion, up 28%. Earnings per share rose 31% to $5.42, or 13% to $4.68 on an adjusted basis. The company raised its full-year 2026 earnings guidance to between $18.30 and $18.60 per share ($17.60 to $17.90 adjusted).
The release records a restructuring charge of $336 million before tax, or $253 million after tax, which the company says relates to efficiency initiatives. That sum was paid for out of a $982 million pretax gain from selling its stake in Global Business Travel Group. The adjusted figures exclude both the gain and the charge, so the cost of the cuts does not reduce the headline adjusted profit.
What is not said
The release does not say how many jobs are going, in which countries or functions, or by when. It gives a percentage, not a headcount, and none of the sources consulted gives a savings target. CNBC’s headline ties the cuts to AI preparation, but the release does not say which roles AI is expected to replace.
Chief executive Stephen Squeri said in the release that business momentum continues and that credit quality is excellent. In the same quarter, the company’s expenses rose 9% to $14.5 billion, driven mostly by customer engagement costs tied to higher card spending and the refresh of its Platinum Card, the company says.
For employees, the sequence is stark: a record quarter, a raised forecast, and a notice that one in twenty jobs will go. The next figure to watch is the headcount in the company’s annual report, which would show how many roles were actually lost.
