News · October 23, 2026, 17:33 UTC
American Express plans to eliminate about 5% of its global workforce, roughly 3,500 roles, the company said on October 23, 2026, as it reported third-quarter results and outlined a restructuring tied to artificial intelligence and automation. CEO Stephen Squeri announced the cuts on the company’s quarterly earnings conference call that morning.
The restructuring came with a $336 million charge in the third quarter, according to InvestmentNews. American Express employed approximately 76,800 people as of December 31, 2025, with about 25,900 in the U.S. and about 50,900 outside it, the company disclosed.
What happened
Squeri told analysts the company had “good momentum, but to accelerate innovation, and win over the next few years, we needed to become a more agile and efficient organization.” On the same call, he said American Express is using AI to raise productivity, automate processes and make the organization more efficient, adding that agentic transaction volumes remain small even though “the direction is clear.”
CFO Christophe Le Caillec told CNBC the leadership wants to “reduce layers and increase spans of controls, so that we can automate and take advantage of AI in the coming quarters and the coming years,” according to Yahoo Finance.
The cuts landed alongside a stronger quarter. Third-quarter profit was $3.71 billion, or $5.42 a share, versus $2.9 billion, or $4.14 a share, a year earlier, Morningstar reported. Adjusted earnings per share were $4.68 against analyst estimates of $4.48, and revenue net of interest expense rose 9% to $20.06 billion, just below the $20.12 billion analysts forecast.
American Express raised its full-year earnings per share outlook to $18.30 to $18.60 from $17.30 to $17.90, a range that includes a gain from the sale of its equity investment in Global Business Travel Group, part of which is being reinvested in the restructuring. Adjusted earnings per share are expected at $17.60 to $17.90, with sales growth of 10% for the year. The stock fell 3.3% to $314.57 on Friday and is down 15% this year, Morningstar reported.
Analysis: Why it matters for investors
The announcement suggests management is trading a near-term charge for what it expects to be a leaner cost base and more capacity to invest in cardmember perks and technology. Investors should note that the raised guidance rests partly on a one-time gain from the Global Business Travel Group sale, so the adjusted range may be the cleaner read on operating trends. Whether the savings materialize as higher margins or are reinvested in benefits and marketing has not been disclosed. The market reaction, a decline of more than 3% on the day, indicates some investors focused on the charge and the softer-than-expected revenue rather than the guidance raise.
Who is affected
About 3,500 roles are expected to go across the global workforce of roughly 76,800 as of the end of 2025. The company has not disclosed the geographic or functional breakdown of the cuts. The move follows Barclays, which said this week it would eliminate about 5,000 jobs, roughly 5% of its workforce, with about 60% of the reductions falling on support functions including developers, according to its earnings presentation as reported by Yahoo Finance. Barclays CFO Anna Cross said about 1,000 positions had already been eliminated, with another 4,000 expected before year-end.
Broader labor data cited by Yahoo Finance showed initial unemployment claims fell by 6,000 to a seasonally adjusted 194,000 in the week ending October 17, while about 1.94 million Americans had been unemployed for 27 weeks or longer in September, or 27.1% of all unemployed workers, according to the Bureau of Labor Statistics. Employment in financial activities was down 129,000 since a May 2025 peak, the BLS said, with most of the loss in insurance carriers and related activities, InvestmentNews reported.
What is still uncertain
The timing and geographic distribution of the American Express cuts have not been disclosed, and the company did not say which teams or functions will be affected. InvestmentNews said it had requested additional details from the company. The sources do not say how much of the restructuring is directly attributable to AI rather than to organizational simplification, and agentic commerce volumes remain small by the CEO’s own account.
Conclusion: What to watch next
Investors will watch whether the restructuring charge is followed by measurable efficiency gains in coming quarters and whether the company details where the reductions fall. The durability of cardmember spending, fee growth and the raised outlook, along with any further commentary on AI-driven automation, will shape how the market reads the plan.
brokertable.net has not reviewed the original earnings materials; details are based on reporting by InvestmentNews, Yahoo Finance and Morningstar.
Frequently Asked Questions
How many jobs is American Express cutting?
American Express plans to eliminate about 5% of its global workforce, roughly 3,500 roles, the company said on October 23, 2026. It employed approximately 76,800 people as of December 31, 2025.
How much did the restructuring cost American Express?
The company took a $336 million restructuring charge in the third quarter of 2026, according to InvestmentNews. The charge was disclosed alongside third-quarter results.
Why is American Express cutting jobs?
CEO Stephen Squeri said the company needed to become more agile and efficient to accelerate innovation. CFO Cristophe Le Caillec told CNBC the aim is to reduce layers and automate with AI in coming quarters and years.
How did American Express perform in the third quarter?
Third-quarter profit was $3.71 billion, or $5.42 a share, versus $2.9 billion, or $4.14 a share, a year earlier, Morningstar reported. Revenue net of interest expense rose 9% to $20.06 billion, and the company raised its full-year earnings outlook.
Which other company recently announced AI-related job cuts?
Barclays said this week it would cut about 5,000 jobs, roughly 5% of its workforce, with about 60% affecting support functions including developers, according to its earnings presentation as reported by Yahoo Finance. About 1,000 positions had already been eliminated.
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