Amex to cut 5,400 jobs; take $287 m restructuring charge
Reuters
Houston: Credit card major American Express Co has announced it is cutting 5,400 jobs, primarily in the travel business, and take a $287 million restructuring charge associated with those layoffs.
The charge is likely to lower the company’s adjusted fourth quarter net income by 46 per cent from a year earlier, the company said in a statement on Thursday. Excluding the charge, however, the company said its fourth quarter adjusted net income was $1.2 billion, or $1.09 per share.
“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 Chairman and CEO Kenneth Chenault said. “Travel has gone through a great deal of change,” Chenault said in a conference call with analysts. The economics of corporate travel has “changed more dramatically over the years than any part of the business”, he said.
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