American Express is cutting about 3,500 jobs worldwide, or 5% of its global workforce, as the credit card giant looks to streamline operations and prepare for its next phase of growth. The move comes even as the company reports strong profits and rising revenue, adding to a wave of corporate job cuts affecting major companies, including Barclays, Volvo, eBay and Electronic Arts.
The planned layoffs mark American Express’ first major workforce reduction in roughly a decade, according to the Associated Press. The New York-based financial services company had nearly 77,000 employees at the end of 2025.
American Express reported a net profit of $3.71 billion for the third quarter of 2026, a 28% increase from the same period last year. Earnings reached $5.42 per share, while revenue climbed 9% to $20.06 billion, according to the company’s earnings report.
American Express recorded a $336 million pretax restructuring charge in the third quarter as CEO Stephen Squeri told analysts the job cuts were part of a broader effort to streamline operations, improve efficiency and focus investments on the company’s key business priorities.
“We have got good momentum, but to accelerate innovation and win over the next few years, we needed to become a more agile and efficient organisation,” Squeri said, as quoted by The Wall Street Journal.
The company has maintained that the cuts are aimed at improving efficiency rather than responding to weakening business performance. American Express is also looking to adapt its operations as artificial intelligence reshapes the workplace and financial services industry.
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Chief Financial Officer Christoph Le Caillec told CNBC that the restructuring was intended to make the company “leaner, more agile, and also to prepare for AI.”
American Express’ latest results point to continued customer demand, with the company benefiting from new cardmember additions, customer retention and increased spending.
The company has also raised prices for some of its premium products. Last year, American Express revamped its Platinum Card with additional benefits while increasing its annual fee from $695 to $895.
Despite concerns about the $200 price increase, the company said nearly all customers who transitioned to the higher-fee Platinum Card had chosen to keep it. Net card fees rose by more than $400 million from a year earlier, reflecting the contribution from annual card fees and other card-related revenue.
Customer spending also increased during the quarter. The average cardmember spent $6,375 on their cards in the third quarter, equivalent to roughly $2,125 a month. That represented a 5% increase from a year earlier.
Le Caillec attributed part of the increase to inflation, while the company also pointed to a rise in the number of transactions per cardmember as a factor behind higher spending.
The workforce cuts come as American Express continues to benefit from its premium customer base and growing card-related revenue. The restructuring suggests the company is seeking to improve productivity and control costs while continuing to invest in technology and innovation.
American Express has also raised its full-year adjusted earnings outlook. The company now expects adjusted earnings of $17.60 to $17.90 per share, compared with its previous forecast of $17.30 to $17.90 per share.