American Express To Cut 5,400 Jobs
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.