American Express cuts 5% of workforce to boost AI readiness

American Express is eliminating 5% of its global workforce, a move CEO Stephen Squeri described as necessary to prepare for artificial intelligence. The decision was announced Friday, the same day the company released its third-quarter earnings results.

Squeri told analysts that the company is booking a $336 million restructuring charge for the quarter, a figure that typically covers employee severance costs. The reduction affects a workforce that stood at nearly 77,000 employees at the end of 2025.

In explaining the rationale, Squeri stated that while the company maintains strong momentum, it needed to become a more agile and efficient organization to accelerate innovation and secure its position over the coming years. He added that this restructuring will allow American Express to operate more effectively and free up capacity to invest in its core business priorities.