American Express to reduce workforce by 5% in response to AI advancements

American Express (Amex) is embarking on a significant restructuring initiative that will involve a reduction of approximately 5% of its global workforce, amounting to the elimination of around 3,800 jobs. This decision is part of the company’s strategic shift aimed at enhancing operational efficiency and integrating advanced technologies, particularly artificial intelligence (AI), into its core processes. The announcement was made during the company’s third-quarter earnings call, where CEO Stephen Squeri noted that this restructuring would incur a charge of 6 million.

As of the end of 2025, American Express employed nearly 77,000 individuals. The company aims to become “leaner and more agile” as it prepares to leverage AI capabilities across various functions. Chief Financial Officer Christophe Le Caillec explained that the goal is to optimize processes thoroughly before automating them. This approach highlights the growing trend within the financial services sector, where institutions are increasingly substituting repetitive roles with AI-driven solutions. For instance, Barclays recently disclosed similar plans to cut approximately 5,000 jobs, underscoring a collective movement among financial firms toward technological advancements and cost efficiencies.

During the earnings call, Squeri emphasized the importance of improving the company’s agility to meet dynamic consumer demands and industry pressures. He stated that American Express is committed to personalizing customers’ experiences, incorporating AI in a responsible manner that safeguards customer and merchant data. The company plans to restrict AI agents from accessing their systems unlawfully, ensuring that connections with external platforms occur only through approved channels.

Financially, American Express reported adjusted earnings per share of .68, surpassing analyst expectations and prompting an upward revision of its full-year earnings guidance to a range between .30 and .60. While total revenue reached .06 billion, slightly falling short of projections, the company remains optimistic about its future direction.

Despite the promising quarterly performance, shares of American Express experienced a decline of about 4% in afternoon trading. This drop reflects market concerns regarding the broader implications of the workforce reduction amid an otherwise robust financial environment shaped by consumer spending and credit resilience.

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