Most companies cut jobs when business is bad. American Express is doing it in a quarter where profit jumped 28%. The card giant says it will remove about 3,500 roles worldwide, even as it raised its earnings forecast for 2026. That mix of strong numbers and layoffs tells you a lot about how big companies are thinking right now.
American Express announced the American Express layoffs on Friday, October 23, 2026, alongside its third-quarter results. The cuts equal roughly 5% of its global workforce. CEO Stephen Squeri said the company has about 78,000 employees, and Amex booked a restructuring charge of $336 million before tax ($253 million after tax) in the quarter to pay for the plan.
Quick Facts
- Who: American Express (Amex), led by CEO Stephen Squeri
- What: About 3,500 job cuts, around 5% of global staff
- When: Announced October 23, 2026, with Q3 results
- Where: Global; roles, countries and teams not disclosed
- Key numbers: Q3 net income $3.7 billion (up 28%), revenue $20.1 billion (up 9%), restructuring charge $336 million
American Express Layoffs: What the Company Announced
The job cuts came packaged with an upbeat earnings report. Amex said revenue rose 9% to $20.1 billion in the July to September quarter. Net income climbed 28% to $3.7 billion, helped by a one-time gain from selling its stake in Global Business Travel.
Strip out the one-offs and adjusted earnings came in at $4.68 per share. That beat what Wall Street analysts were expecting, which was around $4.48 to $4.49 depending on the survey.
Card members charged $454 billion on their cards in the quarter. Travel and entertainment spending led the way, and the company also pointed to new card sign-ups and customers sticking around.
Why Cut Jobs When Profit Is Rising?
Amex frames this as an efficiency move, not a distress move. On the analyst call, Squeri said the company wants to become more agile, reduce layers and speed up decisions.
Chief Financial Officer Christophe Le Caillec described the cuts as structural rather than a reaction to a weak economy. According to reports of the call, the plan removes management layers and gives managers bigger teams, which he linked to getting ready for more automation and AI in the coming years.
One important detail: Amex has not said that AI is directly replacing the people who will lose their jobs. The AI link is about how the company wants to be organised in future, not a claim that software is doing these specific jobs today.
Costs are the other part of the story. Bloomberg reported the cuts as an effort to keep rising expenses in check. Total expenses rose about 9% to $14.5 billion. Member rewards costs, the points and perks that make Amex cards popular, were up 10%. Marketing spending rose 11%. Squeri admitted the premium card market has been “highly competitive.”
Amex Raises 2026 Profit Forecast
Despite the cost pressure, Amex lifted its full-year 2026 earnings target to $18.30 to $18.60 per share. The earlier range was $17.30 to $17.90.
Investors were not fully convinced. Amex shares fell 1.8% to $319.45 in early New York trade on Friday, according to Bloomberg via Yahoo Finance. The stock was already down nearly 14% for the year. Billed business also came in slightly below analyst estimates, which Amex partly blamed on exiting some small-business co-brand card deals.
The quarter had another cloud too. Earlier in October, Amex was hit with a $350 million fine linked to anti-money-laundering violations, with enforcement actions from US regulators. The company said the penalty will not change its 2026 guidance.
Part of a Wider Wave of Banking Job Cuts
Amex is not alone. Barclays announced 5,000 job cuts in the same week, and HSBC’s UK wealth management cuts were reported earlier in October. The common thread is profitable financial firms trimming middle layers while they spend heavily on technology.
For Indian readers, this matters because many global banks and card companies run large tech and service operations in India. Amex itself has a big presence in the country. However, the company has not said which countries, teams or levels of seniority will be affected, so there is no confirmed India impact at this stage.
What We Don’t Know Yet
- Which departments, countries or job levels will see the cuts
- The exact timeline for the layoffs beyond the Q3 charge
- How much money Amex expects to save each year
- Whether any of the roles are in India
What This Means for You
If you hold an Amex card, nothing changes for now. The company has not announced any changes to card benefits or fees as part of this plan. Your rewards and customer service lines continue as before.
If you work in banking, fintech or a global capability centre, the message is clear. Companies are flattening management layers and planning for automation, even in good years. Building skills in data, AI tools and customer-facing roles that are hard to automate is a sensible hedge.
This article is for information only and is not investment advice.
Our Take
A 28% profit jump paired with 3,500 job cuts sounds harsh, and for the people affected it is. But it is also an honest signal of where corporate thinking has moved. Companies no longer wait for a downturn to restructure. They trim while they are strong, and they say “AI” and “agility” while doing it. Expect more announcements like this from banks and big brands over the next few quarters.
FAQs
How many jobs is American Express cutting?
About 3,500 jobs, or roughly 5% of its global workforce of around 78,000 people.
Why is Amex laying off staff when profits are up?
Amex says it wants to be more agile and efficient, with fewer management layers. Rising rewards and marketing costs are also part of the picture.
Are Amex layoffs happening in India?
Amex has not said which countries are affected, so any India impact is unconfirmed for now.
Is AI replacing the Amex jobs being cut?
The company has not said that. Its CFO linked the restructuring to preparing for automation and AI in future, not to AI replacing these specific roles.
What is Amex’s new 2026 earnings forecast?
Amex now expects earnings of $18.30 to $18.60 per share for 2026, up from $17.30 to $17.90 earlier.
Official results and filings are available on the American Express investor relations site.
Based on reporting by Bloomberg (via Yahoo Finance), MarketScale and Reuters.
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