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American Express to Cut About 5% of Jobs as Q3 Profit Rises 28% and EPS Guidance Is Raised

American Express took a $336 million restructuring charge to eliminate about 5% of positions, while third-quarter net income rose 28% to $3.7 billion and full-year EPS guidance moved higher.

Oct 24, 2026 - 07:16

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American Express plans to eliminate about 5% of its positions worldwide as part of a restructuring, the company disclosed on Friday, October 23, 2026, alongside third-quarter results that showed record revenue, a 28% rise in net income and an increase in its full-year earnings forecast. The shares fell roughly 4% in afternoon trading, CNBC reported.

Restructuring charge and job cuts

The company recorded a restructuring charge of $336 million, or $253 million after tax and 37 cents a share, in the third quarter, according to its quarterly report filed with the Securities and Exchange Commission. Chairman and CEO Stephen Squeri told analysts the charge "is expected to result in the elimination of approximately 5% of our positions globally," according to a transcript of the earnings call. Reuters put the reduction at about 3,500 jobs. American Express had almost 77,000 employees at the end of 2025, CNBC reported.

"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 call. Chief Financial Officer Christophe Le Caillec told CNBC the restructuring was intended to make the company "leaner, more agile, and also to prepare for AI." He said the company aims to "reduce layers and increase spans of controls, so that we can automate and take advantage of AI in the coming quarters and the coming years."

The charge was funded with part of a gain from the sale of the company's equity interest in Global Business Travel Group, which produced a pretax gain of $982 million, or $751 million after tax, the filing shows. Salaries and employee benefits expense rose 15% from a year earlier to $2.57 billion, according to the company's supplemental financial tables.

Third-quarter results

Total revenues net of interest expense rose 9% to a record $20.06 billion, the company's earnings release shows, slightly below the $20.12 billion analysts expected, according to LSEG data cited by CNBC. Net income was $3.71 billion, up 28% from $2.90 billion, and diluted earnings per share rose 31% to $5.42 from $4.14. Excluding the GBTG gain net of the restructuring charge, adjusted earnings were $4.68 a share, up 13% and above the analyst average of $4.48 compiled by LSEG.

Billed business, the total spending on American Express cards, increased 8% to $454.0 billion. Net card fees rose 16% to $2.97 billion; management said on the call that fee growth was 17% on a foreign-exchange-adjusted basis. Travel and entertainment spending rose 10%, led by a 13% increase in the airline category and a 9% rise in restaurants, Reuters reported.

Provisions for credit losses fell to $985 million from $1.29 billion a year earlier, reflecting a reserve release compared with a reserve build in the prior-year quarter. The net write-off rate was 1.8%, down from 1.9%. Consolidated expenses rose 9% to $14.5 billion, which the company attributed mainly to higher card member engagement costs tied to spending and the refresh of its U.S. Platinum Card. The effective tax rate fell to 18.1% from 24.1% because of discrete tax benefits.

Guidance raised

American Express raised its 2026 earnings forecast to $18.30 to $18.60 a share on a reported basis, or $17.60 to $17.90 adjusted, and said it remains on track for revenue growth of about 10%. CNBC said the prior reported-basis target was $17.30 to $17.90. Squeri said an expense for legal matters, including the unreserved portion of a civil money penalty recently levied by the Office of the Comptroller of the Currency, does not affect full-year guidance, and that the related orders do not impose an asset cap.

AI and the broader industry

Squeri said the company is "not going to let assistants run rogue through our system," and that it will allow AI agents to access its systems only through approved API or MCP channels, CNBC reported. The cuts follow Barclays' confirmation on Thursday of plans to trim 5,000 jobs, also roughly 5% of its staff, according to CNBC. Reuters reported that American Express shares were down 12% for the year before Friday's session.