Company looking to flatten management layers, even as third-quarter profit beat analyst expectations
American Express is eliminating about five per cent of its global workforce as it reorganizes to make greater use of artificial intelligence in its internal operations, CEO Stephen Squeri told analysts Friday on the company's third-quarter earnings call.
The company is taking a US$336-million restructuring charge tied to the cuts, CNBC reported. American Express had almost 77,000 employees at the end of 2025, which would put the reduction at roughly 3,800 positions.
In an interview with CNBC, CFO Christophe Le Caillec said the restructuring was intended to make American Express "leaner, more agile, and also to prepare for AI."
'Reduce layers and increase spans of control'
Le Caillec framed the cuts as groundwork for automation rather than a direct replacement of workers by technology.
"You don't want to automate processes that are not optimally structured," he told CNBC. "So what we're doing here is 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."
On the analyst call, Squeri described the charge as an efficiency measure taken from a position of strength. "We've got good momentum, but to accelerate innovation and win over the next few years, we needed to become [a] more agile and efficient organization," he said, as quoted by CNBC.
The announcement follows a similar move by Barclays, which on Thursday confirmed plans to cut 5,000 jobs, also roughly five per cent of its staff, as part of a technology-driven cost initiative, CNBC reported. Banks and other financial firms are increasingly working to replace repetitive roles with AI automation, even as the sector reports strong profits on the back of growing consumer spending and resilient credit.
'Not going to let assistants run rogue'
Squeri spent about 10 minutes of his prepared remarks on AI, focusing largely on how the technology will be used to personalize experiences and offers for cardholders, according to CNBC.
While he said American Express needs to meet customers' desire to use AI tools, including AI agents, he drew a firm line on how those agents can interact with the company's systems. The company is "not going to let assistants run rogue through our system," Squeri said.
"We need to protect our customers [and] merchants, and we're only going to allow agents to access our systems that are either approved through API or MCP channels," he said. CNBC described API and MCP as two methods for securely connecting outside platforms with American Express systems.
Previously, a Chinese court ruled that employers cannot demote or dismiss staff solely to replace them with artificial intelligence.
Profit beats, revenue slightly short
The workforce reduction came alongside quarterly results that topped Wall Street's profit expectations. Adjusted earnings per share were US$4.68, ahead of the US$4.48 average analyst estimate compiled by LSEG.
Total revenue rose nine per cent to US$20.06 billion, slightly below LSEG's forecast of US$20.12 billion. Executives attributed part of the drag on spending to the company's recent exits from small business co-brand partnerships.
American Express also raised its full-year earnings guidance to a range of US$18.30 to US$18.60 per share on an unadjusted basis, up from its previous target of US$17.30 to US$17.90. Le Caillec told CNBC the improved outlook was helped by proceeds from the company's sale of its stake in Global Business Travel Group, part of which is funding the restructuring.
Shares of American Express fell roughly three per cent in morning trading Friday.
Gartner previously predicted that half the companies that have cut staff due to AI will be hiring them back by 2027, “to perform similar functions, but under different job titles.” This comes after realizing that the gaps in skills – such as “expertise, empathy, and judgment,” according to Emily Potosky of Gartner – left by laid-off humans weren’t necessarily filled by their AI replacements.
