American Express to Cut 3,500 Jobs -- Update

By Joseph De Avila and Jasmine Li

American Express is cutting 5% of its global workforce in an attempt to put a cap on rising costs.

That reduction amounts to about 3,500 jobs, the company said Friday. Chief Executive Stephen Squeri said the job reductions were part of a plan to streamline the organization and invest in business priorities.

"We have got good momentum, but to accelerate innovation and win over the next few years, we needed to become a more agile and efficient organization," Squeri said in a conference call with analysts.

The credit-card company announced the job cuts the same day it reported a 9% rise in sales in the third quarter. American Express also said it is boosting its profit outlook for the year as its customers continue to spend more.

Shares dropped as much as 3% in early trade.

Squeri said the improved outlook was based on the company's performance so far this year. American Express is seeing strong billings as it adds new customers and retains its existing card members, he said.

The American Express layoff announcement caps a week where other sizable employers have also said they would cut jobs.

Barclays said Thursday it would cut 5,000 jobs, or 5% of its workforce, to reduce costs.

On Wednesday, eBay said it would lay off 9% of its employees, or roughly 1,000 workers. Those job cuts follow a previous round of layoffs in February that affected 6.5% of eBay's workforce.

Earlier Friday, Volvo said it would slash 2,500 jobs, or about 6% of its workforce. The Swedish carmaker, which is majority-owed by a Chinese company, already cut 3,000 jobs earlier this year and said it aims to save another $500 million. Volvo is grappling with a difficult Chinese auto market and intensifying competition. Shares fell 25% in Friday trade.

U.S.-based employers announced 43,281 job cuts in September, the latest data available, which was down 20% from the prior-year period, according to outplacement firm Challenger, Gray & Christmas.

Through September, U.S. employers have reported 573,195 job cuts so far this year, down 39% from the 946,426 cuts announced in the first nine months of 2025 when the new Trump administration significantly downsized federal jobs.

"Employers are facing high energy costs, an uncertain war in Iran, a rate hike that could make hiring more expensive, plus the likelihood of surging healthcare costs," said Andy Challenger, workplace expert and chief revenue officer for Challenger, Gray & Christmas.

Write to Joseph De Avila at joseph.deavila@wsj.com

(END) Dow Jones Newswires

October 23, 2026 10:10 ET (14:10 GMT)