American Express to Cut 5% of Staff, About 3,500 Jobs, as It Raises 2026 Profit Guidance

American Express said on 23 October that it will cut about 5% of its global workforce, roughly 3,500 of its 78,000 employees, on the same day it reported record third-quarter revenue of $20.06 billion and raised its 2026 earnings guidance to $18.30–$18.60 a share. The shares closed lower, and the combination of a profit beat and a headcount cut put the card issuer's cost discipline at the centre of the quarter.

What did American Express announce?

Chief executive Stephen Squeri told Bloomberg TV that the company employs 78,000 people, which puts the cut at about 3,500 jobs, according to Bloomberg's report carried on Yahoo Finance. On an analyst call, Squeri said the aim was to make the company "more agile and efficient," reduce management layers and speed up decisions. Chief financial officer Christophe Le Caillec went further, saying the goal was to make American Express "leaner, more agile, and also to prepare for AI" by removing layers before more work is automated, as 24/7 Wall St. reported.

The company booked a $336 million pretax restructuring charge, or $0.37 a share, according to 24/7 Wall St. Bloomberg gave the after-tax figure as $253 million. The two numbers describe the same charge before and after tax. The company did not say which units or countries are affected, when the cuts will be finished, or how much they will save, according to 24/7 Wall St.

How did the quarter look?

Third-quarter revenue net of interest expense rose 9% to a record $20.06 billion, slightly short of the $20.12 billion that analysts surveyed by LSEG expected, according to 24/7 Wall St. Adjusted earnings rose 13% to $4.68 a share, ahead of the $4.49 average in a Bloomberg survey. Billed business, the measure of cardmember spending, rose 8% to $454.0 billion, down from 9% growth in the first half and below Bloomberg's $456.9 billion estimate. American Express attributed part of the shortfall to exiting some small-business co-brand deals.

The guidance increase owes much to a one-off. American Express sold its stake in Global Business Travel Group, booking a $982 million pretax gain worth $1.11 a share, according to 24/7 Wall St. Bloomberg put the after-tax gain at $751 million and said part of it funded the restructuring charge. The net gain is excluded from adjusted results, so the raised GAAP range of $18.30–$18.60, up from $17.30–$17.90, flatters the underlying improvement.

Why are costs the pressure point?

Total expenses rose about 9% to $14.5 billion, below the $14.8 billion analysts expected, Bloomberg reported. Within that, member rewards costs rose 10% and marketing expenses rose 11%. Le Caillec had expected marketing to grow about 10% in the second half versus a year earlier, so the quarter ran slightly hotter than that guide.

The pressure comes from the premium-card model. American Express has raised the consumer Platinum annual fee from $695 to $895 and added about $1,680 in new or increased statement credits, View from the Wing reported, citing the company. Card fee revenue grew 17% to nearly $3 billion, the company added 3.1 million cards, and 76% of new accounts carried an annual fee. Yet statement credits, lounge access and other benefit costs rose 36%, a pace that outstrips revenue growth by a wide margin. Squeri acknowledged the rivalry directly: "It's been highly competitive," he said, and he expects it to stay that way.

What did the market and regulators do?

Shares of American Express fell 3.68%, or $11.95, to $313.22 on Friday, according to 24/7 Wall St., leaving the stock down about 14.4% for the year. Intraday moves differed by source: Bloomberg reported a 1.8% fall to $319.45 in early trading, so the final decline was steeper than the opening one. The 24/7 Wall St. analysis argued that American Express is more exposed than those networks to a spending slowdown because it both lends and runs a network, so weaker spending hurts fee income and credit performance together.

Regulators loomed in the background. The Office of the Comptroller of the Currency and the Federal Reserve took enforcement actions earlier in October over deficiencies in American Express's anti-money-laundering systems, resulting in a $350 million fine, Bloomberg reported. The company said the penalty will not affect its 2026 guidance or any 2027 outlook, and that the orders do not impose an asset cap.

Is this part of a wider pattern?

American Express was not alone in announcing cuts. Barclays said on 22 October that it would eliminate about 5,000 jobs, citing productivity gains from artificial intelligence, 24/7 Wall St. noted. Bloomberg added that HSBC plans reductions in its UK wealth-management business and that Citigroup has been lowering headcount.

American Express reported record revenue and told investors it was "on track to deliver another year of 10 percent revenue growth," per Squeri's remarks as quoted by 24/7 Wall St. A cut made from strength is a bet that automation and a flatter structure can hold expenses below revenue growth as benefit costs climb.

What changes for cardmembers?

The earnings call also signalled tighter product controls. From 1 January 2027, stays booked through Fine Hotels + Resorts must be at least two nights to qualify for the $300 semiannual Platinum lodging credit; currently one night qualifies, View from the Wing reported. Eligible Airbnb Luxe stays will be added to the renamed credit, also with a two-night minimum. Squeri said AI could make it easier for customers to optimise benefits but also easier for American Express to "identify what cardmembers are doing," and he warned that "you'll see other controls," according to the same report.

What we don't know yet

Several material facts are unconfirmed. American Express has not published a breakdown of the 3,500 roles by business unit, region or timing, nor a target for annual savings. It is also unclear how much of the headcount reduction will come from attrition versus layoffs. Analysts at Truist Securities, including Brian Foran, said the headline numbers were good but the details were more mixed, according to Bloomberg, and the next test is whether expenses fall relative to revenue in coming quarters. The 24/7 Wall St. analysis said the outlook would weaken if billed business growth fell below 8% or if the shares closed below their 52-week low of $290.97.