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American Express to slash 4,000 jobs worldwide

Global travel and payment services firm American Express will be trimming another 4,000 jobs representing nearly 6 per cent of its global workforce, as the firm continues its efforts to cut down costs.

The company said it would take a pre-tax restructuring charge of about $180-250 million in the second quarter.

“The charge is primarily associated with severance and other costs related to the elimination of approximately 4,000 jobs or about 6 per cent of the company’s current worldwide workforce,” American Express said in a statement.

According to the firm, the reductions would occur across business units, markets and staff groups saving, resulting in a total benefit of about USD 175 million.

In October 2008, American Express said it would cut 7,000 jobs or nearly 10 per cent of its total workforce then.

American Express plans to slash spending on marketing and business development, aimed at saving USD 500 million.

Further, the entity would be reducing operating costs by cutting expenses for consulting and other professional services, travel, and general overhead.

In the stress tests conducted by the US on the country’s leading banking holding companies, American Express was found to be well capitalised in case the current economic situation turns worse in the coming months.

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