American Express Company (AXP.US) plans to cut 3,500 jobs, with cost reduction and efficiency gains coexisting with concerns over a consumption slowdown.

American Express Company (AXP.US) is cutting 5% of its workforce globally as Chief Executive Officer Steve Squeri seeks to contain the company's rising costs. The company has 78,000 employees, meaning the cuts will affect about 3,500 positions, Squeri told media outlets. In recent months, Financial Institutions, Inc. has been cutting jobs, with some companies attributing the change to increased use of artificial intelligence. This week, Barclays said it would cut 5,000 positions. HSBC HOLDINGS is planning job cuts in its UK wealth management business, and Citigroup has also been reducing headcount. Speaking on a call with analysts on Friday, Squeri said the cuts reflect the company's desire to become more agile and efficient, and to find ways to reduce management layers and speed up decision-making. The job-cut announcement came after Amex reported better-than-expected third-quarter results adjusted earnings per share of $4.68, beating the $4.49 analyst average estimate in a Bloomberg survey. The company also raised its full-year earnings guidance, according to a Friday statement, forecasting earnings per share of $18.30 to $18.60 for 2026. That compares with a prior expectation of $17.30 to $17.90. But "billed business," a measure of transaction volume on credit cards and other products, was $454 billion in the third quarter, below the $456.9 billion average estimate in the survey. The company said its exit from some small-business co-brand card agreements weighed on results. Truist Securities analyst Brian Foran and others said the slowdown in billed-business growth may be slightly disappointing. "Overall good Amex beat and raised," the analysts wrote in a note to clients. "But the details are mixed." GBT Sale Results were also affected by the sale of the company's stake in Global Business Travel Group (GBT), which generated a $751 million after-tax gain. Amex used part of the gain to cover $253 million in after-tax restructuring charges related to efficiency initiatives. The gain, net of restructuring, was excluded from adjusted results. "Our business momentum continues, with strong billed business, new customer acquisitions and card member retention, and excellent credit quality," Squeri said in the statement. American Express Company said third-quarter expenses rose about 9% to $14.5 billion, below analysts' $14.8 billion estimate. Amex has been refreshing some of its credit cards, adding a series of benefits to its Platinum card last year. Earlier this month, the company said it would partner with Airbnb, Inc. Class A to allow some luxury stays on its travel site to count toward cardholders' annual lodging credits. Chief Financial Officer Christophe Le Caillec previously said marketing expenses were expected to rise about 10% year over year in the second half of 2026. The company also faces a $350 million fine over anti-money-laundering violations. The Office of the Comptroller of the Currency (OCC) and the Federal Reserve took enforcement action against Amex earlier this month, alleging deficiencies in its anti-money-laundering systems. Amex said at the time that the fine would not affect its previously issued full-year 2026 guidance or any 2027 outlook, and that the orders would not impose an asset cap on the company.