American Express to cut about 5% of its workforce despite a 28% profit rise

The job cuts

On Friday, 23 October 2026, American Express said it would cut about 5% of its global workforce as part of a restructuring meant to raise efficiency and speed up the adoption of artificial intelligence. The reported number differs by outlet. AGI and SAPO put the reduction at about 3,800 jobs, while Handelsblatt, The Telegraph, N-tv, RTBF and Der Standard cite roughly 3,500, which Handelsblatt puts at five percent of 78,000 employees. Chief executive Steve Squeri spoke about the cut on Bloomberg TV, according to Handelsblatt and Der Standard. On a conference call with analysts, he said the cuts were part of a plan to streamline the organisation and invest in business priorities, according to N-tv. The company frames the move as internal reorganisation and efficiency work rather than a sudden drop in business, SAPO reports.

Third-quarter results

The cuts came alongside a strong quarter. Revenue reached $20.06 billion, up 9% from a year earlier, according to AGI. Net profit rose 28% to $3.71 billion, compared with $2.9 billion in the same period of 2025, SAPO reports, and earnings per share were $5.42 against $4.14 a year earlier. Handelsblatt says profit beat analyst expectations even without the one-off gain from selling the stake in Global Business Travel Group, which brought in more than $750 million after tax. AGI puts the sale at $6.3 billion and records $336 million in charges for the quarter, partly funded by those proceeds. Squeri raised the 2026 earnings-per-share outlook to between $18.30 and $18.60, at least 40 cents above the previous top of the range, according to Handelsblatt.

Market reaction and sector context

Shares fell after the results. Handelsblatt reports a drop of about 3% shortly after the New York open, while AGI records a 3.54% decline. Handelsblatt says analysts had expected stronger card spending from customers. American Express is not alone in cutting staff. Barclays announced plans to cut 5,000 jobs earlier in the week of 19 October 2026, and RTBF reports that HSBC and Citigroup are also reducing staff. RTBF adds that some banks have pointed to the rise of artificial intelligence to justify their cuts. Unlike Visa and Mastercard, American Express also lends money, and it targets higher-spending customers with travel discounts and airport lounge access, according to Handelsblatt.

Card fees and spending

Last year the company raised the annual fee on its Platinum card from $695 to $895, according to SAPO, while adding benefits. SAPO reports, citing the Associated Press, that almost all customers moved to Platinum kept the card despite the higher fee. Net revenue from card fees such as Platinum's rose by more than $400 million year on year. The average customer spent $6,735 between July and September, an increase of about 5%, SAPO reports.