American Express Cuts 5% of Jobs to Get Ready for AI
American Express said it is cutting 5% of its workforce as it gets ready to use more artificial intelligence (AI) in its business. The company shared the news along with its latest earnings report, where CEO Stephen Squeri spent about 10 minutes talking about how AI will change the way Amex works with its customers.
Squeri said AI will help Amex offer more personal deals and experiences to people who use its cards. But he also made clear that the company will not let AI run free through its systems. "We're not going to let assistants run rogue through our system," he said.
He explained that Amex will only let AI "agents," which are computer programs that can act on their own, connect to its systems in safe, approved ways. He named two methods for this: API and MCP. Those are just technical terms for secure digital doorways that let outside systems talk to Amex's systems without causing a mess.
Squeri said the goal is to protect customers and merchants, the businesses that accept Amex cards, as AI use grows. The company wants to make sure AI tools are helpful, not risky.
Along with the AI news, Amex shared strong financial results. The company's adjusted earnings were $4.68 per share, beating what analysts expected, which was $4.48 per share, according to data from LSEG. Amex also raised its full-year earnings forecast to a range of $18.30 to $18.60 per share, up from its earlier estimate of $17.30 to $17.90.
Part of that boost came from money Amex made by selling its stake in Global Business Travel Group, a travel company. Amex's finance chief, Le Caillec, said some of that money is going toward paying for the company's restructuring plan, which includes the job cuts.
Total revenue grew 9% to $20.06 billion, just a bit under Wall Street's forecast of $20.12 billion. Company leaders said some of the slower spending was linked to Amex ending certain partnerships with small businesses that had co-branded cards.
Despite the strong profit numbers, Amex's stock price fell about 4% in afternoon trading.
What This Means for You
If you use an American Express card, these changes might shape how you interact with the company in the future. Here's what to know.
- Expect more AI in your experience. Amex plans to use AI to offer deals and services that fit your habits more closely.
- Your data stays protected, for now. The company says it is limiting which AI tools can access its systems, to keep customer and merchant information safe.
- Job cuts may affect service teams. With a 5% reduction in staff, some day-to-day operations could shift as the company reorganizes.
- Financial strength remains solid. Despite the cuts, Amex beat profit expectations and raised its outlook for the year.
This site exists to help smart, busy people understand what's happening in AI without needing a dictionary. Many companies are making big changes because of AI, and it can be confusing to keep track of every term and move. The goal here is to break down what's really happening, in plain language, so you can stay informed without the jargon.
Amex's choice to cut jobs while investing in AI shows a pattern seen across many industries right now: companies trying to do more with fewer people, using new technology to fill the gaps. This isn't just a story about one credit card company. It's a sign of how AI is reshaping jobs and customer service everywhere.
As more businesses follow this same path, it helps to understand the basic tools behind these changes, like what APIs and AI agents actually do. Knowing these basics can help you make sense of news like this as it keeps happening.
Next step: Keep an eye on how your favorite companies, including Amex, roll out AI tools in the coming months. If you get offers or customer service messages that mention "AI assistance," take a moment to understand how your data might be used before you say yes.
Source: CNBC
