American Express to cut about 5% of its workforce and reports 27.3% profit increase

American Express will reduce its global workforce by approximately 5% as part of a reorganization that, according to management, seeks to simplify the structure, accelerate innovation, and allocate more resources to invest in technology and marketing. The company announced the measure on October 23, 2026, alongside its third-quarter results, and recorded $336 million in restructuring charges during that period.

The adjustment is announced while the business shows growth: between July and September, American Express earned $3.649 billion in attributable net income, a 27.3% increase year-over-year. The company also raised its full-year 2026 earnings per share guidance.

Management links the cuts to efficiency and investment

Chief Executive Officer Steve Squeri explained that the company's commercial performance has allowed it to increase investments in marketing and technology while reviewing its organization. The intention, he told analysts, is to make the organization more agile and efficient to execute its plans and compete in the coming years.

The company presents the job reductions as part of a broader restructuring, not as a direct substitution of each worker by artificial intelligence systems. Christophe Le Caillec, Chief Financial Officer, linked the reorganization to the reduction of organizational layers and the preparation of processes for potential automation.

Management has not detailed which areas, countries, or functions will be affected, nor the implementation timeline. It has also not broken down the components of the $336 million in charges or the expected savings from the reorganization. Therefore, that figure reflects the booked charge but does not, by itself, determine the total cost of the adjustment or its subsequent financial impact.

Artificial intelligence, an accelerator still in its early stages

Squeri described AI as an accelerator of the growth strategy: it can contribute to automating processes and improving productivity, as well as changing how consumers and businesses discover options, compare, pay, and manage their finances. At the same time, he warned that its large-scale implementation remains in an initial stage and that the volume of transactions conducted via AI agents is still small.

The company's explanation positions organizational simplification as a preparation for incorporating technology, but does not specify which processes will be automated first or how many positions may be related to that automation. The announced information also does not allow concluding that AI is the direct cause of each job elimination.

Quarterly results and new forecasts

In addition to net income, American Express's revenue reached $20.062 billion in the third quarter, an 8.9% year-over-year increase. Provisions for the period were $985 million, a 23% decrease compared to the same quarter of the previous year.

In the first nine months of 2026, the company earned $9.663 billion in attributable net income and revenue of $58.606 billion, representing year-over-year advances of 17% and 10%, respectively. Cumulative provisions totaled $3.320 billion, a 13.6% decrease compared to the same period in 2025.

Following the year-to-date performance, American Express raised its 2026 earnings per share guidance to a range of $18.30 to $18.60. Squeri also noted that the company expects to close the year with 10% revenue growth. The positive results accompany the announcement of the adjustment, but the company did not attribute the cuts to a deterioration in the business: its public explanation focused on efficiency, innovation, and preparing the organization for the future.