American Express (NYSE: AXP) shares fell 3% to $315.38 in early trading Friday after the payments giant announced plans to cut about 5% of its global workforce, even as its third-quarter adjusted earnings surpassed Wall Street expectations.
Chief Executive Officer Stephen Squeri disclosed the planned reductions during the company’s earnings conference call. American Express recorded a $336 million pretax restructuring charge in the quarter, with Squeri saying the changes are intended to simplify teams, improve efficiency, and create more capacity to invest in business priorities.
The company employed approximately 76,800 people worldwide at the end of 2025, according to its annual filing. Based on the company’s year-end 2025 workforce, a 5% reduction would represent roughly 3,800 positions, although American Express has not disclosed a final job-cut total or completion timeline.
American Express Beats Earnings Estimates but Misses Revenue Forecast
American Express reported adjusted third-quarter earnings of $4.68 per share, exceeding analysts’ expectations of approximately $4.50. Revenue, net of interest expense, increased 9% year over year to $20.06 billion, narrowly missing the $20.12 billion consensus estimate.
Reported net income rose 28% to $3.71 billion, or $5.42 per share. The result included a $982 million pretax gain from selling the company’s stake in Global Business Travel Group, partially offset by restructuring costs. Adjusted earnings excluded both items.
The company also raised the lower end of its full-year adjusted earnings forecast to $17.60 per share from $17.30, while keeping the upper end unchanged at $17.90. It maintained its outlook for approximately 10% annual revenue growth.
Cardmember spending remained higher during the quarter, with total billed business increasing 8% to $454 billion. Travel and entertainment spending rose 10%, with airline spending up 13% and restaurant spending increasing 9%.
American Express Shares Retreat After Four Consecutive Gains
Friday’s early decline followed four straight sessions of gains that lifted American Express shares 3.7%, from $313.59 on October 16 to Thursday’s closing price of $325.17.
The latest pullback erased most of that advance, leaving shares about 0.6% above their pre-rally closing price. The stock had already fallen about 12% year to date through Thursday, despite its recent recovery.
Separately, American Express Tokenized Stock (AXPon) was trading at $317.32, down 2.77% over the past 24 hours, according to CoinMarketCap. The tokenized instrument is distinct from American Express shares listed on the New York Stock Exchange.