✎ Contributed by Ty Griffin
American Express is eliminating about 5% of its global workforce as the company restructures operations and prepares to automate more internal processes with artificial intelligence. Based on its nearly 77,000 employees at the end of 2025, the reduction could affect approximately 3,850 positions and will result in a $336 million restructuring charge.
The company said it plans to reduce management layers and simplify processes before expanding its use of AI. American Express also emphasized that outside AI agents will only receive access to its systems through approved connections. The card issuer reported better-than-expected adjusted earnings and raised its full-year profit guidance, although quarterly revenue narrowly missed Wall Street estimates.
Market Reaction
- American Express Co. (NYSE: AXP): $312.87, down $12.30 (3.78%)
- Visa Inc. (NYSE: V): $409.29, down $5.05 (1.22%)
- Mastercard Inc. (NYSE: MA): $621.96, down $11.25 (1.78%)
- JPMorgan Chase & Co. (NYSE: JPM): $332.72, down $3.82 (1.14%)
- Capital One Financial Corp. (NYSE: COF): $201.38, down $2.05 (1.01%)
Investor Sentiment
American Express’ decline suggests investors focused on the restructuring expense, revenue shortfall and uncertainty surrounding the operational transition despite stronger earnings guidance. AI could eventually reduce costs and improve personalization, but the company must demonstrate that automation can enhance efficiency without weakening customer service, security or regulatory compliance.
The broader decline among payment and banking stocks reflects growing attention to how artificial intelligence may reshape financial-sector employment and competitive spending. Investors will monitor whether American Express, Visa, Mastercard, JPMorgan and Capital One can convert AI investments into durable productivity gains while protecting sensitive customer and merchant data.
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