Key Notes
- American Express plans to cut about 5% of its global workforce and recorded a $336 million pretax restructuring charge in the third quarter.
- Revenue rose 9% to $20.06 billion, while adjusted earnings increased 13% to $4.68 per share.
- Management is reducing organizational layers before expanding AI automation, following restructuring announcements at Barclays and Netflix.
American Express Co. (NYSE: AXP) plans to eliminate about 5% of its global workforce as it simplifies its organization and prepares to automate more internal processes with artificial intelligence. The cuts accompany a $336 million pretax restructuring charge in the third quarter.
Chief Financial Officer Christophe Le Caillec told CNBC the aim was to make the company “leaner, more agile, and also to prepare for AI.” Management wants to reduce organizational layers and give managers broader responsibilities before expanding automation.
The announcement comes alongside growing revenue and profits, rather than a collapse in card spending. It also follows the layoffs at Barclays and Netflix we have covered this month, as companies reassess staffing even while their core businesses remain profitable.
Amex Restructures Before Expanding AI
Chief Executive Stephen Squeri outlined the workforce reduction on Friday’s earnings call. The company employed almost 77,000 people at the end of 2025, although that historical figure is not a precise current headcount or an exact count of the positions affected.
Le Caillec’s explanation puts organizational redesign ahead of wider automation. The announcement does not establish that AI has already replaced all the jobs being eliminated, nor does the headline percentage identify the roles or locations most exposed.
Squeri also described opportunities for AI-powered customer experiences and shopping agents, while emphasizing that outside agents would need approved access to Amex systems. That makes security and control part of the deployment challenge, alongside potential efficiency gains.
For employees, the distinction between an announced reduction and completed departures matters. The disclosed percentage describes the scale of the plan; it is not evidence that the entire workforce adjustment has already taken place.
Revenue Grows as Restructuring Costs Rise
Amex’s quarterly release showed revenue net of interest expense rose 9% to $20.06 billion. Net income increased 28% to $3.71 billion, while diluted earnings per share climbed 31% to $5.42.
The reported profit included a $982 million pretax gain from selling its equity interest in Global Business Travel Group. Adjusted earnings exclude that gain and add back the restructuring charge, giving a different picture of the quarter’s underlying growth.
On that adjusted basis, net income rose 11% to $3.21 billion and earnings per share increased 13% to $4.68. The restructuring expense was $253 million after tax. Comparing the adjusted and reported figures is essential because the transaction gain lifted reported earnings substantially.
Cardholder activity continued to expand. Billed business reached $454 billion, up 8%, while net card fees increased 16% to $2.97 billion, according to the company’s presentation. Those figures help explain why management presents the reorganization as an efficiency initiative rather than a response to falling overall revenue.
Consolidated expenses rose 9% to $14.55 billion. Amex attributed much of the increase to customer-engagement costs associated with higher spending and its Platinum card refresh, illustrating that reducing staff does not necessarily mean every expense category will decline.
Barclays and Netflix Show a Wider Shift
The closest comparison is Barclays (LSE: BARC), which plans to cut about 5,000 jobs during 2026. As we reported, roughly 1,000 had already gone and another 4,000 were expected to leave in the fourth quarter under a broader technology and efficiency program.
Barclays is also expanding AI tools for employees and developers. Its staffing target, however, covers a wider restructuring effort; describing every departure as the direct replacement of a worker by an AI system would go beyond the disclosures.
Netflix (NASDAQ: NFLX) offers a comparison outside finance. The streaming company announced roughly 1,000 job cuts earlier this month, equivalent to about 6% of its workforce, as we previously reported. Its changes span several corporate and technology functions, rather than demonstrating a single common cause for layoffs across industries.
AI can also generate additional work. Bank of America (NYSE: BAC) brought in about 1,000 outside contractors to help repair software weaknesses exposed by advanced models. We reported that these were consultants supporting a remediation program, not 1,000 newly created permanent developer jobs.
AXP Investors Face an Execution Test
Amex now expects full-year reported earnings of $18.30–$18.60 per share. Its adjusted forecast is $17.60–$17.90, lifting the lower end from the previous $17.30–$17.90 range. The company continues to target 10% revenue growth for 2026.
For AXP investors, the next test is whether a smaller, less layered organization can maintain service and growth while delivering lasting savings. The earnings figures show a profitable business funding change; they do not yet demonstrate the eventual return on its AI investment.
