American Express is reducing its workforce by 5% and booked a $336 million restructuring charge in the third quarter, CEO Stephen Squeri said Friday. The company reported quarterly results the same day.
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American Express plans to cut 5% of its workforce, CEO Stephen Squeri said Friday. The announcement came as the card issuer reported third-quarter results earlier that day. Alongside the job reductions, Amex recorded a $336 million restructuring charge in the quarter. The charge and the headcount reduction were disclosed together, linking the cost action directly to the quarter’s reported results.
A restructuring charge is an accounting entry that recognizes costs tied to reorganizing a business. Such charges can include employee severance, lease exits and other related expenses, and they are recorded in the period when the company commits to the action. For Amex, the $336 million charge is tied to the third quarter and affects the earnings reported for that period. The charge is separate from the longer-term cash timing of the restructuring, which can unfold over multiple periods.
The 5% figure describes the share of the workforce affected, but the initial disclosure summarized by CNBC did not specify the number of employees, teams or geographies involved. That distinction matters because a 5% reduction can be concentrated in particular functions or spread across the company. The $336 million charge gives a financial dimension to the restructuring, but it does not by itself show the expected annual savings. Amex reported the charge in the same quarter as its third-quarter results, so the cost is visible in the period rather than disclosed as a separate long-term item.
Amex is a payments company whose results reflect card spending, lending and fee revenue, and its quarterly report gives the context for the restructuring disclosure. The workforce reduction is a cost-management action, while the $336 million charge is the accounting cost recognized in the third quarter. Because the charge is reported alongside quarterly results, readers can see its effect on the period’s earnings rather than treating it as an isolated announcement. The disclosure did not include a full breakdown of expected savings, implementation timeline or affected roles. Based on public news sources.
American Express said it is cutting 5% of its workforce and recorded a $336 million restructuring charge in the third quarter. CEO Stephen Squeri disclosed the move on Friday, the same day the company reported quarterly results. The announcement links the workforce reduction to a specific accounting cost in that quarter.
The $336 million restructuring charge is an accounting recognition of costs associated with reorganizing the business. Restructuring charges can include severance and related expenses, and they are recorded in the period when the company commits to the action. For American Express, the charge affects the earnings reported for the third quarter.
The disclosure states that 5% of the workforce will be affected, but the initial summary did not provide the exact number of employees. The actual headcount depends on American Express’s total workforce at the time of the reduction. More detail would be needed to determine how the reduction is distributed across teams or regions.
The Workforce Reduction and the Charge
What a Restructuring Charge Represents
Scale and Limits of the Disclosure
How the Action Fits Into the Quarterly Results
This article is rewritten from public news sources and further processed by AI. It is provided for information only and does not constitute investment advice — refer to the original source for the authoritative version.
The restructuring charge was recorded in the third quarter, so it appears in the earnings reported for that period. Companies typically recognize such charges when they commit to a restructuring plan and can estimate the related costs. Reporting the charge alongside quarterly results gives readers a direct view of its effect on the period’s earnings.
The initial disclosure did not specify which teams, functions or geographies will be affected by the 5% workforce reduction. The figure is an aggregate share of the workforce rather than a detailed breakdown. Additional company disclosures would be needed to identify where the reductions will occur.
