American Express is cutting 5% of its workforce to 'prepare for AI'

American Express is cutting 5% of its workforce and booking a $336 million restructuring charge in the third quarter, CEO Stephen Squeri said Friday, hours after the company reported quarterly results.

The card issuer is eliminating thousands of positions as it prepares for artificial intelligence to take over more of its internal processes. The announcement landed the same day as the earnings release, tying the headcount reduction directly to the quarter's financial reporting.

The numbers anchor the story. A 5% reduction translates to thousands of jobs, and the $336 million charge hits the third-quarter books rather than being deferred. Companies typically take restructuring charges upfront so later periods carry the benefit of lower costs. That is interpretation, not reported fact: the source does not quantify savings or give a timeline for them.

Squeri framed the move as preparation for AI absorbing internal workflows, positioning the layoffs as a strategic shift rather than a response to distress. The pairing of a one-time charge with a structural headcount cut gives analysts a clear item to adjust out of the quarter when comparing underlying earnings.