American Express Cuts 5% of Workforce to Prepare for AI

American Express is reducing its workforce by about 5%, and CEO Stephen Squeri tied the move directly to the company's preparations for artificial intelligence. He announced the cut on Friday, the same day the card issuer released its third-quarter results.

To cover the change, American Express is taking a $336 million restructuring charge in the quarter. Charges of this kind usually reflect severance and related costs, which means the figure captures the expense of the cuts rather than a wider business setback.

What stands out is the reason given. Squeri did not frame the layoffs as a response to weak demand. He presented them as part of getting the business ready for AI, a theme many large companies have adopted as they rethink how their operations and staffing should look. Employees and investors will likely watch which roles are affected and whether the savings go back into technology or show up as higher margins.

The company's full filing will carry more detail on the timing and the specific functions affected.