American Express cuts 5% of workforce to prepare for AI

The restructuring announcement

American Express revealed on October 23, 2026, that it plans to reduce its global workforce by approximately 5%. This decision follows the company's third-quarter results and was shared during a call with analysts. The move is intended to help the company become more agile and efficient in its daily operations.

The company will record a US $336 million restructuring charge as a direct result of these changes. According to reporting by Wealth Professional, this financial hit is part of a larger strategy to reorganize the company's structure. The goal is to ensure the firm can operate more effectively in a changing technological landscape.

While the company is cutting staff, it framed the move as an organizational efficiency exercise. The announcement did not suggest that the company is facing deteriorating business conditions. Instead, the focus remains on internal optimization to prepare for future technological shifts.

Impact on the workforce

The reduction will affect approximately 3,500 jobs across the company's global operations. This number is based on the fact that American Express employs roughly 78,000 people worldwide. The company did not provide a specific breakdown of which regions or business units will see the most significant job losses.

CFO Christophe Le Caillec explained that the primary objective is to make the organization leaner and more agile. By reducing the number of employees, the company hopes to streamline its internal processes. This allows the firm to move more quickly and respond better to market demands over the coming years.

The strategy involves a specific management philosophy of reducing layers and increasing spans of controls. This means fewer middle managers overseeing larger groups of employees. By flattening the hierarchy, the company intends to create a structure that is easier to manage and more conducive to automation.

The role of AI in layoffs

A major driver behind these workforce reductions is the company's desire to prepare for artificial intelligence. CEO Stephen Squeri noted that the goal is to create a structure where the firm can automate more tasks. The company wants to take full advantage of AI capabilities in the coming quarters and years ahead.

By removing human-heavy layers of the organization, American Express aims to integrate AI into its core systems more seamlessly. This approach suggests that the company views AI as a tool for replacing manual processes with automated ones. The restructuring is a prerequisite for the company to successfully adopt these new technologies.

The move highlights how AI is influencing corporate strategy beyond just software implementation. It is becoming a reason for physical downsizing and structural changes. The company is essentially reshaping its human capital to align with a future where AI handles a larger share of the workload.

Broader industry trends

American Express is not alone in using AI as a justification for significant workforce reductions. The company's announcement came just one day after Barclays announced plans to eliminate roughly 5,000 jobs. Barclays also cited AI and organizational changes as the primary reasons for its cost-cutting measures.

Other major firms including Block, Coinbase, and Standard Chartered have also pointed to artificial intelligence as a key driver for their layoffs. These companies are part of a larger group of more than 40 organizations that have announced job cuts in 2026. This suggests a widespread trend of using AI to justify leaner corporate structures.

The trend indicates that many large corporations are prioritizing capital efficiency by reducing headcount. By cutting costs now, these companies hope to free up capital for further investment in technology. This cycle of downsizing to fund AI integration is becoming a standard playbook for many large enterprises.

What comes next for the firm

American Express intends to use the next several quarters to execute its plan for automation. The company wants to see the benefits of its leaner structure manifest in its operational speed. By reducing the number of layers, the firm expects to see faster decision-making and more efficient workflows.

The company will continue to monitor its progress toward becoming more agile as it integrates AI. The success of this plan will likely be measured by how much the company can automate its existing services. Investors will be watching to see if the US $336 million charge leads to long-term savings and improved margins.

As the company moves forward, the focus will remain on organizational efficiency rather than just reacting to the market. The goal is to build a company that is structurally ready for the next era of technology. This proactive approach marks a significant shift in how large financial institutions plan for their long-term survival.