# American Express to Cut 5% of Its Workforce to Prepare for AI

- URL: https://usa-24.com/american-express-layoffs-ai-cuts/
- Publisher: USA 24
- Section: Artificial Intelligence (AI)
- Published: 2026-10-24T04:26:08.036Z
- Updated: 2026-10-24T04:26:08.044Z
- Topics: Artificial Intelligence, Layoffs, American Express, Banking, Corporate Restructuring

> American Express will cut about 5% of its global workforce and take a $336 million restructuring charge, with its CFO tying the cuts to preparing for AI.

## Key takeaways

- American Express will cut about 5% of its global workforce and take a $336 million restructuring charge, announced on its third-quarter earnings call on October 23, 2026.
- A company spokesperson put the cut at about 3,500 roles out of roughly 78,000 workers worldwide, below the roughly 3,850 that a straight 5% of its almost 77,000 employees would imply.
- CFO Christophe Le Caillec said the restructuring is meant to make the company leaner, more agile and better prepared for AI.
- The plan starts by reducing management layers and widening how many people each manager oversees, which sets up the company to automate work later.
- Barclays confirmed on October 22 that it plans to trim about 5,000 jobs, roughly 5% of its staff, in a separate tech-driven cost initiative.

American Express layoffs will remove about 5% of the company's global workforce, the company said on its third-quarter earnings call on Friday, October 23, according to [CNBC](https://www.cnbc.com/2026/10/23/american-express-job-cuts.html). Amex will also take a $336 million restructuring charge tied to the cuts, and its CFO linked the moves to preparing for AI.

## How the American Express layoffs were announced

CEO Stephen Squeri told analysts the reorganization is meant to make more use of AI in internal operations. The company's own description leads with restructuring and internal AI use, not with changes customers will see.

Barclays confirmed on Thursday, October 22, that it plans to trim about 5,000 jobs, roughly 5% of its staff, in a separate tech-driven cost initiative, according to CNBC's reporting. The matching percentages look like a coincidence of timing, since the two banks describe different programs. Read together, they show large financial employers putting AI and cost reduction into the same sentence about headcount.

## How many jobs American Express is cutting

The 5% figure appears across coverage, but the headcount behind it does not match. American Express had almost 77,000 employees at the end of 2025, according to [CNBC](https://www.cnbc.com/2026/10/23/american-express-job-cuts.html). A company spokesperson told [Payments Dive](https://www.paymentsdive.com/news/amex-american-express-shrink-workforce-ai-squeri/833853/) the cut would be about 3,500 of roughly 78,000 workers worldwide, which uses a different base and produces a different number.

| Basis | Approximate roles cut |
|---|---|
| Company spokesperson's figure | About 3,500 |
| 5% of almost 77,000 employees (end of 2025) | About 3,850 |
| 5% of roughly 78,000 workers (Payments Dive count) | About 3,900 |

The spokesperson's figure is the most concrete one available, so use it when sizing the cut. Until Amex publishes a headcount breakdown, treat 3,500 as the company's own estimate and the 5% as its headline framing.

## Why the CFO ties the cuts to AI

Chief Financial Officer Christophe Le Caillec told CNBC the restructuring was intended to make the company "leaner, more agile, and also to prepare for AI." The phrasing puts AI last in a list that starts with efficiency, and the plan he described follows the same order.

According to the CFO's explanation as reported by [Myrtle Beach News](https://myrtlebeachnews.com/jobpocalypse-american-express/), the company will reduce management layers and widen how many people each manager oversees. That setup lets Amex automate work later. Le Caillec framed the cuts as groundwork for automation rather than a direct swap of workers for software, and he said the company does not want to automate processes that are not optimally structured.

That sequencing has a practical logic. Automating a poorly organized team can lock in its problems, so clearing up reporting lines first can make software easier to deploy. It also means the first targets named in the plan are management layers, not front-line roles.

## Who gains, who loses and what Amex has not said

Amex has not disclosed projected savings in the material available for this story, so the financial payoff remains an assumption. Investors and executives who want lower operating costs are the clearest beneficiaries of a plan that trims layers and widens spans of control.

Managers face the most direct exposure, since that is where the plan begins. Employees in roles the company says it will automate later face a longer and less defined risk, because Amex has not said which jobs those are.

Amex has not publicly said which departments, locations or job categories will absorb the cuts. That leaves open whether the reductions land in technology, operations, customer service or corporate functions.

Coverage also differs on emphasis. Some headlines lead with AI, while Amex's own explanation puts layers and spans of control first. Readers should weigh both, because the order shapes what employees should expect.

Cardholders are less exposed in the short term. Squeri said Amex is "not going to let assistants run rogue" and will let AI agents access its systems only if they are approved, which suggests the company wants controls in place before agents touch its systems.

Business owners and HR leaders will likely study the sequence closely: fewer layers, wider spans, then automation. That is easier to explain to a board than a headcount cut framed only as a cost emergency, and other employers may copy it.

## AI layoffs are spreading beyond tech

USA 24's running count of AI-linked job cuts stands at about 102,800 jobs across 31 companies, detailed in our [AI-linked layoffs tally](https://usa-24.com/ai-layoffs-2026-tally/). Amex is a new, named entry, and it differs from many cuts that dominated earlier coverage. It is a payments network and card issuer, not a software vendor, so its AI argument concerns how a financial company runs its own operations.

Hiring is shifting too. A separate report that USA 24 covered found that Anthropic's junior technical hires fell from 27% to 9%, as described in [our hiring story](https://usa-24.com/anthropic-junior-hiring-ai-agents-2/). Amex's plan does not single out entry-level staff, but it targets management, which could reshape the middle of a career ladder.

The same day, [TheStreet](https://thestreet.com/stock-market-today/stock-market-today-dow-jones-sp-500-nasdaq-updates-oct-23-2026) reported that the Dow fell about 1.2% as tech stocks sold off over worries about AI spending. That market move does not explain the Amex decision, but it shows investors weighing AI costs against AI returns while companies talk up efficiency.

## What workers and cardholders can do now

Most readers need no immediate action, but a few steps are useful.

- Workers at Amex or other financial firms can watch internal communications for language about delayering, spans of control or automation, which often signals a broader plan.
- If you are notified of a job loss, read the severance terms, benefits continuation dates and any deadline for signing a release before agreeing to anything.
- If you manage other people, ask HR early what criteria will guide any reductions, and document your team's current scope and results.
- Cardholders do not need to act. Watch for account tools that describe how approved AI agents can act on your behalf, since Amex has said agent access will be gated.

## What to watch next

Three things will show how far this goes. First, whether Amex names the departments and locations affected, through a memo, a regulatory filing or a spokesperson statement. Second, whether Barclays and other large lenders describe their cuts in the same AI terms or stick to cost language. Third, whether Amex's future disclosures show wider management spans, which would confirm the reorganization is structural rather than a one-time reduction.

The $336 million charge will appear in the company's financial reporting, giving investors a firmer figure to track. For now, the firmest numbers are the 5% headline and the spokesperson's roughly 3,500 roles, and the next company update should clarify which jobs make up that count.

## Frequently asked questions

### How many jobs is American Express cutting?

American Express says it will cut about 5% of its global workforce. A company spokesperson put the number at about 3,500 roles out of roughly 78,000 workers worldwide, while a straight 5% of its almost 77,000 employees at the end of 2025 would be closer to 3,850. The company has not said which departments or locations are affected.

### Why is American Express cutting jobs?

The company says it is reorganizing to make more use of AI in internal operations. CFO Christophe Le Caillec said the restructuring is meant to make the company "leaner, more agile, and also to prepare for AI." The plan begins with fewer management layers and wider spans of control, which would let Amex automate work later.

### How big is the American Express restructuring charge?

Amex is taking a $336 million restructuring charge tied to the job cuts, according to CNBC's reporting. The charge was announced alongside the company's third-quarter earnings on October 23, 2026. The company has not publicly broken down how the charge will be spent across its operations.

### Is Barclays also cutting jobs?

Yes. Barclays confirmed on Thursday, October 22, that it plans to trim about 5,000 jobs, roughly 5% of its staff. The cut is part of a separate tech-driven cost initiative, which makes it a parallel move rather than part of the Amex plan.

## Sources

1. [American Express is cutting 5% of its workforce to 'prepare for AI'](https://www.cnbc.com/2026/10/23/american-express-job-cuts.html)
2. [Amex to shrink workforce](https://www.paymentsdive.com/news/amex-american-express-shrink-workforce-ai-squeri/833853/)
3. [Jobpocalypse: American Express Is Cutting 5% of Its Workforce to 'Prepare for AI'](https://myrtlebeachnews.com/jobpocalypse-american-express/)
4. [Stock Market Today (Oct. 23, 2026): Dow tumbles following tech sell-off](https://thestreet.com/stock-market-today/stock-market-today-dow-jones-sp-500-nasdaq-updates-oct-23-2026)