American Express Cuts 5% Workforce to Prepare for AI Integration

American Express is planning to reduce its global workforce by 5 percent as the company moves to incorporate artificial intelligence into its operations. The credit card giant announced this decision during its third-quarter earnings call, alongside a $336 million restructuring charge aimed at streamlining the organization.

Stephen Squeri, chairman and CEO of American Express, shared the news with analysts, highlighting the company’s intent to become more agile and efficient in the face of technological advancements. At the end of 2025, American Express employed nearly 77,000 people worldwide, meaning thousands of roles will be impacted by this reduction.

Christophe Le Caillec, the company’s chief financial officer, explained in an interview with CNBC that the restructuring is designed to prepare American Express for AI adoption. He emphasized the importance of optimizing and simplifying processes before automation can be effective. "You don't want to automate processes that are not optimally structured," he said. Part of the plan involves cutting organizational layers and expanding the scope of control for remaining employees to allow AI to be integrated more effectively in upcoming quarters and years.

This workforce adjustment follows a broader industry pattern, as financial institutions increasingly rely on artificial intelligence to replace repetitive tasks and improve efficiency. For example, Barclays recently announced it would cut about 5,000 jobs, roughly 5 percent of its staff, as part of a similar technology-driven cost reduction strategy. These shifts are occurring even though the financial sector continues to benefit from strong consumer spending and stable credit conditions.

During the earnings call, Squeri underscored the restructuring charge as a necessary step to accelerate innovation. "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," he said.

The CEO also devoted time to discussing the company’s approach to AI, focusing on how the technology will enhance personalized experiences and offers for American Express cardholders. While he acknowledged the growing role of AI-powered agents, Squeri made it clear the company will maintain strict control over automated systems to protect customers and merchants. He stated, "We are not going to let assistants run rogue through our system." Access to Amex’s systems will be limited to agents approved through secure channels such as API or MCP connections.

On the financial front, American Express reported quarterly earnings that exceeded Wall Street’s expectations. Adjusted earnings per share reached $4.68, surpassing the $4.48 average estimate by analysts surveyed by LSEG. The company raised its full-year earnings forecast to a range between $18.30 and $18.60 per share, an increase from the previous guidance of $17.30 to $17.90.

Le Caillec noted that proceeds from the sale of American Express’s stake in the Global Business Travel Group helped fund part of the restructuring effort. Total revenue climbed by 9 percent to $20.06 billion, slightly trailing the $20.12 billion forecast. Company executives attributed some of the revenue shortfall to recent withdrawals from small business co-brand partnerships.

Following the announcement, American Express shares dropped approximately 4 percent in afternoon trading. The workforce reduction and restructuring signal a clear commitment by the company to evolve its operations through technology while maintaining a focus on customer security and experience.

As the financial services industry continues to embrace AI, American Express’s move reflects the growing priority of balancing innovation with operational efficiency. Companies in this sector face pressures to reduce costs and improve service through automation, even as they navigate regulatory and security challenges inherent in financial transactions.