American Express to slash 5,400 jobs

Mario Tama/Getty Images

NEW YORK American Express (AXP) says it will cut an estimated 5,400 jobs, mainly in its travel business, and book a $287 million charge.

As a result, the credit card company projects that it will report a decline in adjusted net income from a year ago.

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The company announced the expected layoff in disclosing its fourth-quarter earnings after stock markets closed on Thursday.

On Thursday American Express said its fourth-quarter net income will amount to $637 million or 56 cents per share, reflecting charges for restructuring, Membership Rewards expenses and cardmember reimbursements. Excluding one-time items, the company expects earnings of $1.2 billion or $1.09 per share.

Analysts surveyed by FactSet expected $1.06 per share.

American Express said the job cuts will take place at all levels of the company, with the largest reductions coming in the company's travel business. American Express said in a statement that the unit has been buffeted by what the company called a "digital revolution."

"Against the backdrop of an uneven economic recovery, these restructuring initiatives are designed to make American Express more nimble, more efficient and more effective in using our resources to drive growth," American Express CEO Kenneth Chenault said in a news release. "For the next two years, our aim is to hold annual operating expense increases to less than 3 percent."

[tpaine1]

"Obamanomics" (socialism) continues its magic in losing American jobs. At last count, Obama is now at 6,387,000 lost American jobs and "lo info" Democrats just re-elected him four another four years??
So, logically, we should antipate the loss of another 6,500,000 American jobs and count ourselves lucky?
Didn't Romney promise another 12,000,000 NEW American jobs? And "we, the people" re-elected" the provably "worst President in US history" because he was black?? Just asking?

[tpaine1]

"Obamanomics" (socialism) continues its magic in losing American jobs. At last count, Obama is now at 6,387,000 lost American jobs and "lo info" Democrats just re-elected him four another four years??
So, logically, we should antipate the loss of another 6,500,000 American jobs and count ourselves lucky?
Didn't Romney promise another 12,000,000 NEW American jobs? And "we, the people" re-elected" the provably "worst President in US history" because he was black?? Just asking?

[biz-ad-econ-101]

70% of Amex' human resources are working from India or are "contractors" from India working in the US through Indian-based "resource management" corporations. A very high percentage working in the US are here under the federally-granted H1 Visa program, directly displacing Americans.

So, the announced reduction will come from primarily US-based American citizens.

Have any doubts, Google it for yourself or get a look at an Amex phone listing.

Our legislators once again passed great (sounding) rules that are having bad and unexpected consequences.

[tpaine1]

It's what the federal government does. "The government is the problem not the solution" to quote our greatest 20th century President.
Point in case. The federal government, all 535+1 of them, now owes more money the ENTIRE 350,000,000 American COMBINED (every man, woman and child in the USA) and thanks to "no budget" Senate Democrats, is set to expand federal debt in the next two years to Greece levels.
God help us because we will not help ourselves.

[elliespots1]

There is no one to blame here but Amex......over run with too many Human Resources and not enough anyone else. Pity the poor corporate traveler who is stuck with Travel School Graduates who dont know the difference between Malaysia and Montana. Happy for Amex they only make 8.00 per hour. Now they can hire even more of them. A sorry state of affairs for a company who was once the best in the business. Now they are only concerned if you can read the scripted conversation. And BTW......there is no one to help these poor souls. ON YOUR OWN. Hope the traveler doesnt need anything outside of the script.

[boforillo]

American Express could save a vast amount of money by not sending me a 15 page application every month. I have never had an American Express card! I have never expressed interest in getting and American Express card! Still, every month I get an invitation to join that chokes my industrial paper shredder. I have "opted" out, refused phone inquiries, asked to be taken off their mailing list and yet, they still come. STOP!!

[hypnotoad72]

Well, when they wanted to drown the government in a bathtub, they didn't realize that private industry - in cutting costs as constant excuse - did more than its part to push the flush lever and to get the downward spiral flowing...

Cut all corporate welfare to these companies now... then let's see how pro-"community" they are...

[Larnan5]

Drip down economics is action. This is how the multimillionaire job creators un-create jobs and destroy American workers.

[hypnotoad72]

And regardless of what Obama would do, even if he did anything extreme that helps folks like WFW3536 down there, he will scream "socialism" and "bloody murder", without understanding even a rudimentary definition...

[Larnan5]

Check out how many of these jobs will be outsourced. You will be surprised . I bet none of the top executives will take a pay cut or have to use food stamps.

[wfw3536]

And Obama says we are on the right track with the economy. This morning we find out another 371,000 folks filed for unemployment benefits last week Sad, we have an administration that has no idea of what to do except to raise taxes, and add fees and regulations.

[hypnotoad72]

Well, compared to last administration's screwing up so bad that 800k jobs were being shed each month...

Maybe they're all dumb and can't be bothered to look at the whole system. Or maybe they're bought and paid for. I don't now, and it's clear you don't either.

Companies exist to make profit, even if US tapxayers have to prop them up in the form of "subsidy" (not related to the bailouts, QE3, operation twist, trickle down economics, or whatever other names you want to call parasitic practices...)