American Express announced plans to cut approximately 5% of its global workforce, translating to thousands of jobs, as part of a strategic shift to prepare for the integration of artificial intelligence within its operations. The company, which had nearly 77,000 employees at the end of 2025, is taking a $336 million restructuring charge related to these workforce reductions, according to CEO Stephen Squeri during the firm’s third-quarter earnings call. CFO Christophe Le Caillec described the restructuring as a necessary step to create a leaner, more agile organization better positioned to leverage AI technologies effectively.

The company aims to streamline its internal processes by reducing hierarchical layers and expanding spans of control, thereby optimizing operations before automating tasks with AI. Le Caillec stressed that automating poorly structured processes would be inefficient, hence American Express is focusing on reorganization to ensure AI implementation is beneficial and sustainable over the coming years. This move aligns with a broader industry trend, with other financial firms like Barclays also announcing significant job cuts to boost efficiency through technology, even as the financial sector enjoys strong profit growth fueled by consumer spending and resilient credit conditions.

During the earnings call, Squeri emphasized American Express’s commitment to evolving with AI while maintaining stringent security measures to protect customers and merchants. The company plans to restrict AI-driven agents’ access to its systems through approved channels only, signaling cautious and controlled deployment of AI innovations to avoid risks. Squeri also highlighted how AI will be used to enhance personalized offers and experiences for cardholders, reinforcing the company’s customer-centric approach amid technological transformation.

Financially, American Express reported adjusted earnings per share of $4.68 for the quarter, surpassing analysts’ expectations of $4.48, and raised its full-year earnings forecast to a range of $18.30 to $18.60 per share, up from $17.30 to $17.90. Total revenue grew 9% to $20.06 billion, slightly below the $20.12 billion forecast. The company attributed some revenue shortfalls to recent exits from small business co-brand partnerships. Despite a roughly 4% decline in its stock price after the announcement, the company appears focused on investing in AI-driven efficiency gains to secure long-term growth and innovation.