American Express To Cut 5,400 Jobs

American Express job cuts

American Express Co said it would cut about 5,400 jobs, and take about $600 million in after-tax charges in the fourth quarter, which will halve its net income for the period.

The credit card company said it would employ 4 to 6 percent fewer people by the end of 2013, compared to its current headcount of 63,500.

New York-based AmEx said the largest reduction would come in its travel business and would be spread proportionately between the U.S. and international markets.

"For the next two years, our aim is to hold annual operating expense increases to less than 3 percent," Chief Executive Kenneth Chenault said in a statement.

The company will take a $287 million after-tax restructuring charge, in addition to other charges related to its rewards program and reimbursements to cardholders under agreements signed with regulators.

AmEx expects to report a profit of $637 million, or 56 cents per share, including the charges.

Excluding the items, the company estimates fourth-quarter adjusted net income at $1.2 billion, or $1.09 per share.

Shares of the company rose 1 percent to $61.45 in trading after the bell. They closed at $60.79 on the New York Stock Exchange on Thursday.

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tmoschetti

Do you think the AP (administration Press) will tell us how this is another sign that the economy is stabilizing like they did after reporting a rise in first itme unemployment requests. They also reported steady "growth!"

But, (Reuters) - U.S. employers kept their pace of hiring steady in December, falling short of the levels needed to bring down a still lofty unemployment rate and pointing to lackluster economic growth in 2013."

There is NO growth! Our GDP is worse than CUBA'S!
HAVANA, Cuba (AP) — Cuba says it will finish the year with 3.1 percent economic growth, lower than expected but higher than in 2011, when growth was 2.7%. Our growth rate in 2011 was 1.8%

It appears that Cuba's Socialist/Communist leaders are more competent than our Socialist/Communist "leaders!"! And it gets worse. We're below 75 percent of the world in GDP growth. We’re below Egypt, Mexico and Albania. In fact we're number 166 in the world.

The national media is the Anti-Christ!

January 12 2013 at 2:31 PM Report abuse rate up rate down Reply
don_johnson15

The downsizing of the USA continues under Obama. The people that voted for him again SHOULD be ashamed of themselves.

January 12 2013 at 9:57 AM Report abuse +2 rate up rate down Reply
1 reply to don_johnson15's comment
gramos555

Because in you imagination the President can stop corporations from laying people off?

January 12 2013 at 1:00 PM Report abuse -1 rate up rate down Reply
onebigcanine

it's a publicly traded company. It is made up of these little certificates called shares. If the company does not produce a decent enough thing called a profit, then people do not invest and the company becomes worthless. If you are smart enough to have a 401 K plan and realize it isn't the governments job to support you in your old age, then you may have some financial interest in it via a mutual fund.

Any business depeneds on good employees and pays them wages and benefits based on what they are worth in the employment market. Just because you work somewhere, that does not ENTITLE you to employment for life or a living wage for that matter. You have to have value for your company in THEIR eyes. What you think doesn't matter, because it isn't reality.

I work for a similar sized company as just a rank and file employee and will face similar employment issues this year. I do not have an ENTILTEMENT attitude. I do know you don't bite the hand that feeds you and expect outrageous wages based on my over estimated worth. I obviously am not protected by a union because if this was a unionized industry, the company would go under because nobody will invest in a company that does not derive a decent profit.

I do know that my 401K balance increases because I contribute the max for the match and monitor my investment choices carefully ( I review them daily) I obviously don't have an entitlement attitude and when I lose my job I will get off my butt and find another one. I also believe that the vast majority of people are honest and hardworking and it is not the government's job to support me and protect my employment. I know this industry is over regulated and some pricing is due to it. It takes people to perform these sometimes ridiculous tasks and that has to be passed to the consumer. Who else is supposed to pay for it?

For all you big business haters, if you were the CEO and your job and livlihood depended entirely on financial objectives, you would so the same thing. So stop your hating, get educated and maybe you may have a position of responsibility with all the percs and salary that go with it.

It isn't the company's job to better yourself - that is up to you. Hard work is part of the equation, being educated and dealing with people on all levels is the rest.

January 12 2013 at 6:36 AM Report abuse +1 rate up rate down Reply
indahood15

wonder if the CEO will be taking a cut in pay due to poor performance in leadership? NOT!

January 12 2013 at 12:49 AM Report abuse rate up rate down Reply
mrouxman

WHAT DOES A COMPANY DO WITH $637 MILLION/1.2 BILLION IN PROFITS?? I'M THINKIN..LIVE LIKE F'N GLUTINOUS PIGS WHILE THE REST OF US PAY THEIR REDICULOUS INTEREST RATES!

January 11 2013 at 5:41 PM Report abuse rate up rate down Reply
1 reply to mrouxman's comment
rjackson2a

I guess you missed the part about 56 cents a share. Or do you not know what that means?

January 11 2013 at 6:43 PM Report abuse rate up rate down Reply
whitman1964

What! The credit fcard for the snooty upper class of this country laying off employees!

January 11 2013 at 4:39 PM Report abuse rate up rate down Reply
robbiecee

And exactly why is this!? "For the next two years, our aim is to hold annual operating expense increases to less than 3 percenT". And for the next two years my goal is to focus on getting every Republican that breathes out of DC!

January 11 2013 at 11:19 AM Report abuse rate up rate down Reply

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