American Express Announces 5% Global Workforce Reduction Amid AI Revamp

American Express announced on Friday that it is cutting 5% of its global workforce, or approximately 3,800 jobs, as part of a corporate restructuring.

Chief Executive Stephen Squeri stated during an earnings call that the job cuts incurred one-time costs of $336 million, which lowered third-quarter earnings despite a 28% profit rise to $3.7 billion.

The company is leveraging artificial intelligence to boost productivity, automate processes, and adapt to emerging consumer transaction trends in the payment industry.