American Express to cut 5% of global workforce amid AI shift

NEW YORK, US: American Express is eliminating approximately five per cent of its global workforce, affecting between 3,500 and 3,800 employees, as the financial services giant restructures its operations to manage rising costs and adapt to the rapid integration of artificial intelligence. Chief Executive Stephen Squeri announced the layoffs during a third-quarter earnings conference call, stating the move will transform the company into a "more agile and efficient organization".

The restructuring comes at a time when the global payment industry is undergoing significant technological shifts. Squeri highlighted that the company is actively preparing for increased consumer and business reliance on AI-driven services. While the company did not provide a detailed breakdown of the job cuts across its various global business units, the reduction represents a strategic pivot to simplify its organisational structure and accelerate internal decision-making processes. The layoffs mark a significant operational shift for the card issuer, which had approximately 76,800 employees at the end of 2025, according to a recent securities filing.

Despite the workforce reduction, American Express reported robust financial performance for the third quarter of 2026. The company’s revenue rose by nine per cent year-on-year to $20.1 billion, up from $18.4 billion in the same period last year. Net income surged 28 per cent to $3.7 billion (approximately Rs 31,000 crore), compared to $2.9 billion previously, with earnings per share climbing to $5.42 from $4.14. However, the restructuring effort resulted in a one-time charge of $336 million, which weighed on the quarter's overall earnings.

The decision to trim headcount alongside strong profitability underscores a broader trend among major financial institutions to cap operational expenses while redirecting funds toward automation. As reported by The Wall Street Journal, the cuts are primarily an effort to control rising costs and improve overall efficiency. Furthermore, the integration of AI is fundamentally altering the financial landscape. Squeri noted that while "agentic transaction volumes are still small, but the direction is clear," with AI changing how users discover, compare, and execute payments. By adopting a risk-based approach, the company aims to guard against potential technological vulnerabilities while meeting evolving customer expectations.

Looking ahead, the company expects this restructuring exercise to enhance its operational execution and "give us greater capacity to invest in our business priorities". As the financial sector continues to navigate the dual challenges of macroeconomic pressures and technological disruption, American Express's ability to balance strict cost-control with AI-driven innovation will be critical to maintaining its market position in the coming years.