American Express is cutting about 3,500 jobs worldwide, roughly 5% of its workforce, as part of a restructuring to boost agility, efficiency, and lay the groundwork for broader use of AI.

CEO Stephen Squeri is trimming management layers to speed decision-making and support future growth, while CFO Christophe Le Caillec says the changes will make the company leaner and more agile.

The layoffs mark Amex’s first major workforce reduction in about a decade, occurring even as the company enjoys a strong profitability and revenue backdrop.

Amex is highlighting a premium customer base and ongoing investments in technology and innovation as core elements of its growth strategy.

Amex reported a 28% year-over-year rise in third-quarter profit to $3.71 billion, or $5.42 per share, with adjusted earnings of $4.68 per share; management raised full-year 2026 adjusted EPS guidance and reaffirmed about 10% revenue growth.

The improved outlook was aided in part by the sale of its stake in Global Business Travel Group.

Industry-wide AI investments are shifting resources from labor to AI infrastructure, with a broad reallocation of capital toward automation and costs beyond payroll.

Amex is expanding AI-enabled tools, including conversational AI for staff to resolve customer issues, while preserving human intervention for cases needing personal attention.

Analysts note AI-driven capital deepening is altering productivity measures and growth paths across sectors, not just in finance.

Some observers warn that job impact includes role changes and new uncertainties for remaining employees as responsibilities evolve.

Economists flag potential white-collar impacts from AI, citing studies and polls on customer service, accounting, payroll, and HR work as AI adoption grows.

Market context shows major indices retreating amid AI spending concerns and a tech-led selloff, with October PMI data adding to cautious sentiment.