American Express plans thousands of layoffs after two years of hiring

American Express announced its third-quarter 2026 earnings report on Oct. 23. 

And while the company beat expectations and reported growing billed business, it is simultaneously preparing to eliminate thousands of jobs, potentially cutting more positions than it added during the previous two years.

The reversal comes after the credit card giant steadily expanded its global workforce in 2024 and 2025, even as it undertook smaller restructuring programs.

Now, the company says it needs to change how its teams operate to support future growth.

During its earnings call, American Express revealed plans to eliminate approximately 5% of its global positions as part of a $336 million restructuring.

The restructuring will affect about 3,500 jobs, according to Bloomberg, which cited CEO Stephen Squeri, who said the company has about 78,000 employees. 

In the earnings call, Squeri said the decision was intended to simplify the company’s organizational structure and accelerate decision-making.

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American Express plans layoffs after adding more than 2,000 jobs

The scale of the planned reductions stands out when compared with the company’s recent employment history.

According to its 2023 annual filing, American Express employed approximately 74,600 people worldwide at the end of that year.

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That number increased to 75,100 in 2024 and reached 76,800 by the end of 2025.

The figures represent a net increase of 2,200 employees over two years, including 1,700 added in 2025 alone.

As TheStreet previously reported, the company had not announced major company-wide layoffs during 2024 or 2025, although it continued adjusting staffing in individual business areas. It had not announced a major company-wide round of layoffs during this period.

The news was especially comforting in an AI era where layoffs have become the new normal.

However, this newly disclosed reduction could exceed the net workforce growth recorded across those two years.

American Express has not identified which departments or countries will face the largest cuts, nor has it disclosed when the planned reductions will be completed.

American Express CEO explains why the company is cutting jobs

During the earnings call, Squeri explained that the company’s restructuring plans had been under consideration for months.

“We needed to become a more agile and efficient organization,” he said.

Earlier this year, Squeri instructed senior leadership to identify opportunities to streamline teams, reduce management layers, and concentrate resources on the company’s most important priorities.

The company is funding the restructuring using a portion of the proceeds from the sale of its investment in Global Business Travel Group.

The initiative is also considerably larger than the restructuring expenses American Express reported in recent years.

According to its 2025 annual SEC filing, restructuring expenses, primarily associated with severance charges, totaled:

2023: $179 million

2024: $123 million

2025: $96 million

2026: $336 million

The latest $336 million charge in a single quarter is three-and-a-half times the amount recorded during all of 2025.

American Express is restructuring despite record revenue

The workforce reductions are not taking place because of declining revenue or weaker growth.

According to its third-quarter earnings announcement, American Express generated record quarterly revenue of $20.1 billion, up 9% from the previous year.

Customer spending rose 8%, while the company continued investing in marketing, technology, and expanded card benefits.

However, operating costs remain an important consideration. Consolidated expenses increased 9% to $14.5 billion during the quarter.

American Express has also been expanding its use of artificial intelligence to improve productivity, including tools for customer service, marketing, and software development.

Squeri discussed those initiatives during the earnings call, but the company has not directly attributed the planned layoffs to AI.

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