NEW YORK — American Express said it plans to eliminate about 3,500 jobs, or nearly 4.5% of its global workforce, as the card issuer seeks to streamline operations and respond to growing competition and the expanding use of artificial intelligence.
The AmEx move comes at the same time five of the nation’s six largest banks eliminated more than 10,000 positions during the second quarter of 2026, marking the industry’s largest quarterly workforce reduction in at least six years even as major Wall Street firms reported strong financial results, as the CU Daily reported here.
A company spokesperson confirmed the reductions, affecting a workforce of approximately 78,000, as American Express released its third-quarter earnings Friday. The spokesperson declined to provide further details, Banking Dive reported.
CEO Stephen Squeri told analysts the restructuring is intended to increase productivity, simplify operations and accelerate decision-making.
“We’ve 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 on the earnings call, according to Banking Dive.
Squeri said he had asked managers earlier this year to identify opportunities to improve operations. Executives offered few additional specifics about the cuts.
Competition Intensifies
Banking Dive reported that JPMorgan Chase, Visa and Mastercard are competing more aggressively with American Express for premium cardholders through loyalty programs and airport lounge benefits. In corporate payments, fintech companies including Brex and Ramp have expanded expense-management automation and AI tools. Capital One acquired Brex this year after completing its purchase of Discover in 2025.
Squeri said American Express plans to introduce more AI agents into its commercial platform and explore ways to personalize consumer services. Potential uses include tailoring restaurant recommendations and reservations through Resy and personalizing offers for restaurant and travel services through ChatGPT.
Quarterly Earnings Rise
American Express reported third-quarter net income of $3.71 billion, up 28% from a year earlier, on revenue of $20 billion, a 9% increase, according to the Banking Dive report.
Billed business increased 8% on a foreign-exchange-adjusted basis to $454 billion, compared with 9% growth during the first half of 2026. Chief Financial Officer Christophe Le Caillec characterized cardholder demand as “strong and consistent.”
Expenses rose 9% to $14.5 billion, including an 11% increase in marketing spending. The quarter included a $336 million restructuring charge. The company also recorded a gain from selling its travel services business and accounted for a $350 million Office of the Comptroller of the Currency penalty tied to alleged anti-money laundering compliance failures, Banking Dive reported.
Expanding Its Customer Reach
American Express also is pursuing customers outside its traditional affluent base through partnerships with companies including Bread Financial and Synchrony, Squeri said. He indicated the company would avoid similar partnerships with large-bank competitors because earlier arrangements had not worked out.
“It’s allowing us to reach more segments of the population that we traditionally wouldn’t reach,” Squeri said of those partnerships, adding that he expects more such deals.
