American Express to Cut About 5% of Global Workforce, Takes $336M Charge

American Express said on October 23 that it will eliminate about 5% of its global workforce as part of a restructuring recorded in its third-quarter results, according to Reuters. Chief Executive Stephen Squeri disclosed the plan on a post-earnings call with analysts on Friday, after the company reported record quarterly revenue.

Key Takeaways

• American Express will eliminate about 5% of its global positions under a restructuring announced on October 23, 2026.
• The company recorded a $336 million restructuring charge in the third quarter.
• Managers said the cuts will reduce layers and prepare the company to automate and use AI.

What changed

Reuters reported that American Express took a restructuring charge in the third quarter for a plan expected to eliminate about 5% of its global workforce. The charge was $336 million before tax, according to the company’s third-quarter filing. Chief Financial Officer Christophe Le Caillec told CNBC the goal is to make the company “leaner, more agile, and also to prepare for AI.” Squeri said the move is designed 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 CNBC’s reporting of the call. The company framed the plan as an efficiency exercise, not a response to weak business: third-quarter revenue rose 9% to $20.1 billion, and American Express raised its full-year earnings outlook in the same release.

Who it affects

The reduction applies across the company’s global workforce. With about 78,000 employees globally, a figure cited by Bloomberg, a 5% cut works out to roughly 3,500 jobs. American Express did not provide a breakdown of which regions or business units will bear the heaviest reductions in its initial announcement, and it has not said that AI is replacing the specific roles being eliminated.

When it takes effect

The plan was announced on October 23, 2026, and the $336 million charge was recorded in the third quarter. The company did not disclose a timetable for individual departures or say when affected employees will be notified. The restructuring was partly funded by a $982 million gain from the sale of the company’s stake in Global Business Travel Group, which closed in the quarter.

Sources: Reuters, October 23, 2026; CNBC reporting of the October 23 earnings call, via Wealth Professional and Investopedia; Bloomberg workforce figures via Wealth Professional; American Express third-quarter 2026 results and SEC filing, October 23, 2026.

Educational coverage — not tax or investment advice.