American Express on Friday announced a 5% workforce cut that will eliminate 3,800 positions worldwide, a move that comes amid a 28% rise in quarterly profit to $3.7 billion.
CEO Stephen Squeri explained that the restructuring will make the company "more agile and efficient", giving it greater capacity to invest in business priorities.
AmEx is deploying AI to boost productivity and automate processes, and the firm expects consumer use of AI to grow, Squeri said, noting that transaction volumes are still small but the trend is clear.
The layoffs will generate $336 million in one‑time costs, lowering Q3 earnings, and the company plans to finish the restructuring by July 31 2026, paving the way for deeper AI investments.
Squeri emphasized a risk‑based approach to AI, warning against rogue agents while urging the company to meet market demands.