American Express CEO Stephen Squeri stated on Friday that the credit card company will lay off 5% of its employees globally.
The company announced its third-quarter results earlier on Friday. Squeri told analysts that the company will record reorganization expenses of $336 million this quarter. Such expenses typically include costs related to employee layoffs.
American Express will have nearly 77,000 employees by the end of 2025.
"We already have a good momentum, but in order to accelerate innovation and win in the coming years, we need to become a more flexible and efficient organization," said Squeri.
"We believe that this measure will help us operate and execute more effectively, and it will give us greater capacity to invest in business priorities," he said.
Chief Financial Officer Christophe Le Caillec stated in an interview with CNBC that this restructuring cost is aimed at making American Express "more streamlined and more flexible, and also to prepare for AI."
"You wouldn't want to automate processes that are not optimally structured, so what we're doing here is to reduce the number of layers and expand the management scope. This way, we will be able to automate and utilize AI in the coming quarters and years," said Le Caillec.
This report is still being updated. Please check for the latest developments later.
