By John Meyer, consultant in business – Eurasia Business News, October 23, 2026. Article no. 3219
American Express plans to eliminate approximately 3,500 jobs, or about 5% of its global workforce, as the credit-card company seeks to control rising costs and simplify its operations. Announced on Friday, October 23, the reductions add to a week of workforce cuts at major employers including Barclays, eBay and Volvo Cars.
The American Express layoffs come despite stronger quarterly earnings and continued spending by its affluent customers. Chief executive Stephen Squeri said the restructuring was intended to improve efficiency rather than respond to a downturn in business, underscoring how profitable companies are reassessing staffing and organizational structures.
Why American Express Is Cutting Jobs
Squeri said the company wants to reduce management layers, accelerate decision-making and direct investment toward its priorities. Those include improving benefits for cardholders as competition intensifies in the premium credit-card market.
American Express faces expensive competition from Capital One and JPMorgan Chase, whose rewards and benefits packages put pressure on the cost of retaining customers. Perks help attract high-spending cardholders, but they also require substantial ongoing expenditure.
The company’s operating costs rose approximately 9% to $14.5 billion in the third quarter. That increase helps explain why management is pursuing savings even while revenue and profits continue to grow.
The company had not specified which countries, departments or offices would bear the reductions in the available reporting. Employees therefore face uncertainty over how the global announcement will translate into individual job losses.
Strong Earnings Do Not Prevent Layoffs
American Express reported adjusted earnings of $4.68 per share, exceeding the $4.49 average estimate in a Bloomberg analyst survey. Higher profit and revenue also prompted the company to raise its annual earnings outlook.
The results highlight an important distinction: layoffs are not always evidence of falling sales. In this case, management is attempting to preserve profitability and reorganize operations while demand remains resilient. AP described the announcement as the company’s first major job cuts in roughly a decade.
Nevertheless, investors reacted cautiously. American Express shares fell approximately 4% during Friday trading, although that intraday move should not be presented as a confirmed closing decline.
Barclays, eBay and Volvo Also Reduce Staff
The announcement followed several other major workforce reductions:
- Barclays disclosed plans to eliminate 5,000 jobs while reducing costs and integrating artificial intelligence.
- eBay announced approximately 1,000 cuts, equivalent to 9% of its workforce.
- Volvo Cars announced another 2,500 reductions, following 3,000 positions cut earlier this year.
These decisions span different industries and business conditions. They should not be treated as proof that every employer faces the same problem or that AI directly caused every lost position.
What the Restructuring Means
For American Express, the test is execution: whether a smaller, less layered organization can lower costs without weakening service, employee capacity or the premium experience that supports customer loyalty. Strong current earnings give management room to reorganize, but they do not guarantee that the changes will deliver sustainable savings.
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© Copyright 2026 – Eurasia Business News. Article no. 3219
