consumerfinance

AmEx cuts 5% of workforce despite raising full-year profit outlook

🏦 American Express plans to cut 5% of its global workforce, around 3,500 jobs, to streamline operations and speed up decisions as affluent customers continue spending.

📊 Q3 revenue rose 9% to $20.1 billion, while card spending grew 8% to $454 billion. Adjusted EPS of $4.68 beat expectations, prompting AmEx to raise its full-year adjusted EPS floor to $17.60 while keeping the $17.90 ceiling.

💳 However, customer rewards costs rose 10% and marketing expenses climbed 11%. Competition over card benefits is raising the cost of attracting and retaining customers, putting pressure on growth efficiency.

📉 Shares fell around 2.5% in morning trading. Customer spending remains a strength, but AmEx faces the challenge of turning that growth into sustainable profits as servicing costs rise.

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