American Express Plans Workforce Restructuring

American Express announced plans to eliminate around 5% of its global workforce as the credit card company reorganizes its operations to improve efficiency and prepare for broader artificial intelligence adoption.

Chief Executive Officer Stephen Squeri disclosed the reductions during the company’s third-quarter earnings call on Friday. American Express, which employed nearly 77,000 people at the end of 2025, expects to record a $336 million restructuring charge associated with the initiative.

Chief Financial Officer Christophe Le Caillec told CNBC that the objective was to make the organization “leaner, more agile, and also to prepare for AI.”

The restructuring will involve reducing management layers and expanding spans of control, creating an organizational structure that executives believe will better support automation. Le Caillec said the company wants to optimize its processes before automating them, with further AI adoption expected over the coming quarters and years.

Financial Services Accelerate AI-Driven Cost Initiatives

American Express’s announcement reflects a broader shift across financial services as institutions assess how artificial intelligence can automate repetitive tasks and reshape internal operations.

Barclays confirmed plans to eliminate 5,000 jobs on Thursday, also representing approximately 5% of its workforce, as part of a technology-driven cost initiative.

These developments come as financial institutions continue to benefit from resilient consumer spending and comparatively strong profitability. The announcements indicate that workforce restructuring and technology investment remain priorities even when business conditions are supportive.

For American Express, the immediate focus is on organizational efficiency, while the longer-term objective includes using AI to improve customer experiences and personalize offers for cardholders.

CEO Emphasizes Controls for AI Agents

Squeri devoted part of his prepared remarks to the company’s AI strategy, highlighting the potential to personalize customer interactions and accommodate the growing use of AI agents.

However, he emphasized that external AI assistants would not be permitted unrestricted access to American Express systems. The company plans to allow agents to connect through approved application programming interfaces (APIs) or Model Context Protocol (MCP) channels.

The approach reflects the importance of maintaining controls over access to customer and merchant systems as financial institutions introduce more automated services. American Express intends to pursue AI-enabled innovation while limiting access to authorized technical channels.

Earnings Guidance Rises Despite Slight Revenue Miss

American Express reported third-quarter adjusted earnings per share of $4.68, exceeding the LSEG analyst consensus of $4.48. Revenue increased 9% year over year to $20.06 billion, slightly below the $20.12 billion forecast.

The company raised its full-year earnings guidance to $18.30–$18.60 per share on an unadjusted basis, compared with its previous target of $17.30–$17.90. Executives said the updated outlook benefited from proceeds related to the sale of the company’s stake in Global Business Travel Group, part of which was allocated to the restructuring plan.

Management also attributed some pressure on spending to recent exits from small-business co-brand partnerships. Despite the stronger earnings performance and higher guidance, American Express shares declined approximately 4% in afternoon trading on Friday.

What Investors Should Watch Next

Investors will be assessing whether the workforce reductions and process changes translate into sustained efficiency gains without weakening customer service or growth. The company’s ability to implement AI securely, improve operating productivity and maintain spending momentum will be important measures of the strategy’s effectiveness.

The next stages of American Express’s restructuring should also provide further insight into how AI adoption is changing staffing requirements across the financial services industry.