American Express to cut more than 4,000 jobs

[webfact]

American Express to cut more than 4,000 jobs
KEN SWEET, AP Business Writer

NEW YORK (AP) — American Express said Wednesday it plans to cut more than 4,000 jobs this year, about 6 percent of its total workforce.

The New York-based charge card company said the cuts are part of a companywide efficiency drive. The announcement came as it reported an 11 percent rise in fourth-quarter profit.

The cuts will span the company's U.S. and international operations and will take place over the course of the year, American Express spokeswoman Marina Norville said.

The company will take a $313 million pre-tax charge in the fourth quarter, partly as a result of the cuts. In a conference call with investors, American Express Chief Financial Officer Jeffrey Campbell said some of the job cuts will be offset by hiring in other parts of the company.

American Express last did mass job cuts in 2013, when it cut 5,400 jobs, mostly in its travel business.

American Express said it earned $1.45 billion, or $1.39 per share, in the three-month period that ended Dec. 31. That compares with a profit of $1.31 billion, or $1.21 a share, in the same period a year ago. Revenue net of interest expense was $9.11 billion, compared with $8.55 billion a year ago.

For the full year, American Express' profits rose 10 percent to $5.89 billion, or $5.56 per share.

American Express shares fell 2 percent to $85.90 in after-market trading.


-- (c) Associated Press 2015-01-22

[NeverSure]

It's not hard to understand. 1. AMEX has to continue to shed its old business model and 2. It has to ramp up its new business model.

When I was young and a fairly new banker, VISA/Mastercard hadn't come to our bank yet. Even if the idea had existed the computer infrastructure wasn't there to support it.

When people got ready to go on a trip they came in and bought AMEX traveler's checks. We sold a lot of them.

Then one day we were told about Mastercard and every employee was issued one without asking. Bank of America already had the BankAmericard which later become VISA. AMEX offered a card but it had to be paid in full each month. They didn't change that for about 20 years after Mastercard came out.

Don't worry about AMEX. It's one of the top 25 most valuable brands in the world and incredibly profitable. It is just still adjusting from a business-first model to a fully consumer model.

[Friendly Stranger]

Rising profits and cutting jobs. Yeah, that's about right.

[rotary]

Amex, in general, are streets ahead of Visa/Mastercard. Less places take Amex but make more than 3 charges on a Visa/Mastercard and they cut it due to "Fraud". Good they try to protect but what a mess trying to sort it out.

[umbanda]

"Reorganization" in the US is the new word to justify outsourcing...

Globalization is killing US jobs.....Too late now for regrets.

Edited January 22, 2015 by umbanda

[Gillyflower]

It's not exactly on the topic, but this is the first year that I have to pay ATM charges here with my Amex card. It's only 50 baht, but......

[Benmart]

It's not exactly on the topic, but this is the first year that I have to pay ATM charges here with my Amex card. It's only 50 baht, but......

In the past, contacting them about such nuisance charges resulted in them withdrawing and refunding same. It may depend how long you've had the card, spending styles, history and what type card one has.

Good luck.

[SiSePuede419]

It's almost like they want to crash the economy before 2016.

Hmmmm. I wonder why...

[Gillyflower]

Benmart. Thanks for the tip.

[Trouble]

Just a day after State of Union speech in which we are told everything is hunky dory with the growth in the economy. Let's see what these 4,000 think.

[monkey dog]

"Reorganization" in the US is the new word to justify outsourcing...

Globalization is killing US jobs.....Too late now for regrets.

or you could argue that it the 20% rise in the USD against major currencies that is killing america (hooray )