American Express (AmEx) said today that it will fire about 5% of its workers as part of a $336 million restructuring.
Despite these massive layoffs, its Q3 earnings report barely nudged its 2026 full year adjusted profit forecast up by a midpoint of 15 cents per share — less than 1% above analysts’ prior midpoint consensus.
AmEx lifted the floor of its adjusted profit range from $17.30 to $17.60 per share while leaving the $17.90 top end of its range unchanged.
Raising that floor moved the midpoint within its new profit forecast from $17.60 to $17.75, a gain of 0.85%.
Analysts expected $17.63 anyway, so AmEx’s new forecast exceeds consensus by a paltry 12 cents.
Separately, the credit card company is also dealing with a $350 million penalty for missing $13 billion of suspected money laundering activity.
Disappointed, investors sold down the stock price for AmEx 3.7% by noon in New York trading. Year-to-date, the stock has lost 15% of its value.
AmEx layoffs up 5%, profit forecast up 1%
A one-time cash windfall will help the company to fund separation agreements for layoffs. Specifically, AmEx has booked a nearly $1 billion pretax gain on selling its stake in Global Business Travel, more than offsetting its $336 million restructuring charge.
During the earnings call, CEO Stephen Squeri boasted that the company is “dropping two thirds of the gain to the bottom line.”
CFO Christophe Le Caillec told CNBC the cuts make AmEx “leaner, more agile, and also to prepare for AI.” The plan is to “reduce layers and increase spans of controls.”
Fewer managers will oversee more staff, so AmEx can “automate and take advantage of AI,” the executive claims.
Read more: Bank of America hit with $1.2B fine after missing ‘Chinese money laundering’
On October 8, 15 days before the layoff announcement, the US Office of the Comptroller of the Currency (OCC) found “inadequate resources, including staff without sufficient expertise” in AmEx’s anti-money laundering program.
Comptroller Jonathan Gould chastised AmEx, saying banks must “devote sufficient resources to ensure compliance with laws and regulations designed to detect and prevent money laundering.”
Nothing in AmEx’s disclosures indicates how many layoffs, if any, will occur within its compliance departments.
Squeri claimed that the OCC fine “does not impact our full-year 2026 guidance.”
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