American Express plans to eliminate approximately 5% of its global workforce as part of a restructuring initiative designed to simplify its organization, improve efficiency and accelerate decision-making. CEO Stephen Squeri announced the planned reductions on October 23, 2026, during a conference call following the company’s third-quarter earnings release. Based on American Express’s reported year-end workforce of 76,800 employees, the cuts could affect approximately 3,800 positions, according to The Wall Street Journal.
The announcement comes as the financial services company reports higher quarterly profits, strong cardmember spending and an improved full-year earnings outlook. American Express says the restructuring is intended to create a more agile organization while continuing to invest in customer benefits and strategic priorities. The company recorded a restructuring charge in the third quarter to account for the planned reductions, but detailed information about the affected departments, locations and implementation schedule has not yet been disclosed.
Key Takeaways
- Workforce reduction: American Express plans to eliminate approximately 5% of its global workforce, estimated at around 3,800 positions.
- Restructuring goal: CEO Stephen Squeri cited organizational simplification, improved efficiency and faster decision-making.
- Strong quarterly results: Third-quarter net income increased 28% year over year to $3.71 billion.
- Higher revenue: Revenue after interest expense reached approximately $20.06 billion, up nearly 9% from the previous year.
- Profit outlook: The company raised its full-year 2026 earnings guidance.
- AI connection: American Express has not publicly identified artificial intelligence as the direct cause of these specific job cuts in the reporting reviewed.
- Implementation details: The company has not disclosed a complete breakdown of affected teams or the precise timetable for the reductions.
Why Is American Express Cutting 5% of Its Workforce?
American Express is presenting the planned job cuts as an organizational restructuring rather than a response to a sudden deterioration in business performance.
CEO Stephen Squeri told analysts that the company wanted to reduce organizational layers, improve efficiency and make decisions more quickly. The company also intends to continue investing in areas such as cardmember benefits, customer acquisition and innovation.
The restructuring reflects a broader corporate challenge: established financial services companies must balance growth investments with the need to operate efficiently. As businesses expand their technology capabilities, customer services and product portfolios, management teams may reassess whether existing organizational structures are suited to future priorities.
However, the precise reasons individual roles will be eliminated remain unclear. American Express has not provided a detailed public breakdown of which functions will be affected or how the reductions will be distributed across countries.
How Many Employees Could Lose Their Jobs?
American Express employed approximately 76,800 people worldwide as of December 31, 2025, according to its annual filing.
A 5% reduction based on that workforce would represent approximately 3,840 positions. The Wall Street Journal reported an estimate of roughly 3,800 jobs, while some headlines have cited approximately 3,500.
| Workforce metric | Figure |
|---|---|
| Global employees at year-end 2025 | 76,800 |
| Planned workforce reduction | Approximately 5% |
| Estimated positions affected | Around 3,800 |
| Employees based in the United States | Approximately 25,900 |
| Employees based outside the United States | Approximately 50,900 |
Sources: American Express annual report and The Wall Street Journal.
The figures are estimates based on reported headcount, not a final list of employees who will be affected. The company has not yet provided a detailed breakdown of the planned reductions by location, business unit or job category.
American Express Reports Strong Third-Quarter Results
The workforce announcement coincided with a strong quarterly earnings report. American Express recorded higher profits as customers continued spending on its cards and the company benefited from card fees and other revenue sources.
| Financial metric | Third quarter 2026 | Reported comparison |
|---|---|---|
| Net income | $3.71 billion | Up 28% year over year |
| Earnings per share | $5.42 | Compared with $4.05 a year earlier |
| Adjusted earnings per share | $4.68 | Above analyst expectations |
| Revenue after interest expense | $20.06 billion | Up approximately 9% |
| Billed business | $454 billion | Up 8% year over year |
Source: Associated Press and Barron’s.
American Express also benefited from demand for premium products. The company reported that customers continued to spend on travel, shopping and other purchases, while its revamped Platinum Card helped support fee income.
These results provide important context for the layoffs. The company is reducing its workforce while reporting stronger profits, rather than announcing the cuts alongside a reported quarterly loss.
Why Strong Profits Do Not Prevent Job Cuts
A company can be profitable and still decide to reduce its workforce. Financial performance measures how a business is doing, while restructuring decisions often reflect how management wants to organize the company in the future.
For American Express, reducing organizational layers could help streamline decision-making and change how teams coordinate. Management may also seek to direct resources toward product development, technology, customer relationships and other priorities.
That does not establish that the company is eliminating jobs because AI can replace those employees. Although AI is changing how financial services firms operate, the reported explanation for this particular restructuring has focused on efficiency, organizational structure and agility.
Investors and employees will need more information about the affected functions to assess whether technology adoption, duplication of responsibilities or other operational changes contribute to the reductions.
What the Layoffs Mean for American Express Employees
The announcement creates uncertainty for employees who may be affected, particularly because the company has not yet published a detailed breakdown of the roles involved.
The impact will depend on which departments are selected, whether internal transfers are available and what severance or transition support the company provides. Employees should wait for official company communications before drawing conclusions about particular teams or locations.
For the wider workforce, the restructuring may signal changes in reporting structures, management responsibilities and the allocation of resources. Such changes can affect teams even when individual positions are not eliminated.
American Express has not disclosed a comprehensive timetable for completing the planned cuts in the reports reviewed. Further announcements will be needed to establish how quickly the changes will take place and how the company intends to support affected employees.
How the Restructuring Could Affect American Express’s Business
American Express operates a payments network and provides credit cards, payment products and services for consumers and businesses. Its business depends on cardmember spending, customer retention, merchant acceptance and the value of its premium benefits.
The company is seeking to improve organizational efficiency while continuing to invest in these priorities. If the restructuring reduces unnecessary complexity without undermining customer service, it could support the company’s stated goal of becoming more agile.
There are also risks. Large workforce reductions can disrupt institutional knowledge, place additional pressure on remaining employees and affect service quality if essential functions lose too much capacity. The actual outcome will depend on how the company implements the changes.
For now, American Express has emphasized its intention to preserve investment in its key priorities. The results of that strategy will become clearer through subsequent earnings reports, customer metrics and updates on restructuring costs.
The Bigger Picture
American Express’s announcement illustrates how workforce restructuring can continue even when a company reports rising profits and strong customer demand. Businesses may use periods of financial strength to reorganize operations, reduce management layers and redirect resources toward strategic priorities rather than waiting for a downturn.
The case also demonstrates why job cuts should not automatically be attributed to AI. Technology may influence long-term staffing decisions across the financial sector, but American Express has not established AI as the direct cause of these particular reductions in the reports reviewed. The clearest stated rationale remains organizational simplification and efficiency.
FAQs
1. Is American Express laying off 3,500 employees?
American Express has announced plans to reduce its global workforce by approximately 5%. The Wall Street Journal estimates around 3,800 jobs based on the company’s reported headcount, although some headlines cite approximately 3,500. The final number and employee breakdown have not been fully disclosed.
2. Why is American Express cutting jobs?
CEO Stephen Squeri said the company wants to simplify teams, improve efficiency and accelerate decision-making. Detailed information about the departments and positions affected has not yet been released.
3. Is AI responsible for the American Express layoffs?
The reports reviewed do not identify AI as the direct cause of these specific job cuts. The company’s stated rationale centers on restructuring, efficiency and organizational agility.
4. Did American Express report losses before announcing the layoffs?
No. American Express reported third-quarter net income of $3.71 billion, up 28% year over year, and revenue after interest expense of approximately $20.06 billion. The restructuring was announced alongside these results.
5. When will the American Express layoffs take place?
The company has announced the planned reduction, but a detailed implementation schedule has not been established in the reporting reviewed. Employees and investors will need to watch for further official disclosures.
Looking Ahead
The next important developments will be American Express’s disclosure of the affected departments, the timeline for the workforce reduction and the restructuring costs associated with the plan. Those details will help establish whether the changes are concentrated in management, operational teams or a broader range of business functions.
For investors, the central question will be whether American Express can improve efficiency while maintaining customer satisfaction, premium-card growth and strong spending activity. For employees, the priority will be understanding how the restructuring affects their roles and what transition support the company provides. The longer-term results will depend on whether the new organizational structure supports the company’s growth strategy without weakening its operations.
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