American Express Just Raised Its Profit Forecast and Cut 3,500 Jobs in the Same Breath — And the Reason Why Should Make Every American Worker Nervous

 

American Express Just Raised Its Profit Forecast and Cut 3,500 Jobs in the Same Breath — And the Reason Why Should Make Every American Worker Nervous

**By a Market Analyst & Business News Writer | October 23, 2026**

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## The Announcement That Perfectly Captures 2026

Let me tell you about a moment that tells you everything about the strange, contradictory, and deeply unsettling state of the American economy right now.

On Friday morning, October 23, 2026, American Express reported third-quarter earnings that beat Wall Street expectations. Revenue hit a record **$20.1 billion**. Adjusted earnings per share came in at **$4.68**, comfortably above the **$4.48** analysts expected. And the company **raised its full-year profit forecast** to between **$18.30 and $18.60 per share** — up from its previous guidance of $17.30 to $17.90 .

By any traditional measure, this was a **great quarter**.

And then, in the same breath, American Express announced it was **cutting 5% of its global workforce** — roughly **3,500 jobs** — as part of a restructuring charge of **$336 million** .

The stock fell nearly **4%** .

This is the paradox of corporate America in 2026. **Profits are up. Revenue is up. Guidance is up. And thousands of people are losing their jobs anyway.** The reason why should make every American worker pay attention.

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## What Actually Happened: The Numbers Behind the Cuts

Let me break down the quarter, because the details explain the decision.

### The Revenue and Profit Beat

American Express didn’t just meet expectations. It exceeded them.

**Revenue** of **$20.1 billion** was up **9% year-over-year**, driven by higher cardmember spending, growth in net interest income, and a **17% surge in net card fees** — the annual fees members pay for premium cards like Platinum .

**Adjusted EPS** of **$4.68** was up **13%** from a year ago. And **billed business** — the total spending on Amex cards — rose **8% to $454 billion** .

The company’s affluent customer base kept spending. **Travel and entertainment spending rose 10%**, led by a **13% jump in airline spending** and a **9% rise in restaurants** .

American Express’s moat — targeting high-income consumers with strong credit scores — is holding up. As one analyst put it, “Spending is holding up at the top end and there’s no sign of stress in this base, which stands in contrast to the lower-income consumer” .

### The Expense Problem

So why cut jobs if the business is thriving?

**Expenses rose 9% to $14.5 billion** . That’s slower than revenue growth, but it’s still a significant increase. And much of it is **deliberate investment** — marketing spending is expected to rise **10%** in the second half of the year, and the company has been adding benefits to its premium cards to keep customers loyal .

The restructuring is designed to **offset those costs**. By cutting **3,500 jobs** and **reducing management layers**, American Express hopes to become “more agile and efficient” .

“We’ve got good momentum, but to accelerate innovation and win over the next few years, we needed to become a more agile and efficient organization,” CEO **Stephen Squeri** told analysts .

### The AI Preparation

But here’s the part that matters most for every American worker. The job cuts aren’t just about cost-cutting. They’re about **preparing for artificial intelligence**.

CFO **Christophe Le Caillec** told CNBC that the restructuring is aimed at making Amex leaner and more agile **to prepare for AI**. The logic, he explained, is that **you don’t want to automate processes that aren’t optimally structured**. By reducing layers and streamlining operations now, the company can deploy AI more effectively in the coming years .

“You don’t want to automate processes that are not optimally structured,” Le Caillec said .

Squeri, meanwhile, devoted a substantial part of his prepared remarks to AI’s potential to personalize services, offers, and experiences for cardholders. But he also stressed that the company would maintain safeguards. “We’re not going to let assistants run rogue through our system,” he said, explaining that external AI agents would only access Amex systems through approved APIs or Model Context Protocol channels .

This is the playbook. **Restructure the workforce now. Automate later. And frame the job cuts as preparation for a more efficient future.**

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## The Human Cost: 3,500 People

Let me bring this down to earth, because behind the restructuring charge and the earnings beat are **3,500 real people** who are about to lose their jobs.

American Express employed roughly **78,000 people** globally before the cuts . The 5% reduction will affect people across departments and geographies. The company hasn’t detailed exactly how the reductions will be distributed .

For those employees, the timing is brutal. The company is **profitable**. Revenue is at a record. The CEO just raised guidance. And yet, their jobs are being eliminated — not because the business is failing, but because **the business wants to be leaner for the future**.

This is the new reality of corporate America. **Layoffs aren’t a sign of distress anymore. They’re a sign of preparation.** And the people who bear the cost are the ones who didn’t get a say in the decision.

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## What This Means for American Workers

American Express isn’t alone. The financial services industry is in the middle of a **workforce transformation** driven by technology and efficiency.

**Barclays** confirmed plans to cut **5,000 jobs** — roughly 5% of its workforce — as part of a technology-driven cost-cutting initiative, just one day before Amex’s announcement . **Citigroup** has also been reducing its workforce .

The pattern is clear. **Even companies that are performing well are cutting jobs.** They’re using the savings to invest in technology, to return capital to shareholders, and to prepare for a future where AI does more of the work.

For American workers, the message is sobering. **A strong economy doesn’t guarantee job security.** A profitable employer doesn’t guarantee job security. The only thing that guarantees job security is having skills that are **hard to automate** — and even then, the definition of “hard to automate” is changing every year.

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## The Stock Reaction: Why Investors Punished the News

Here’s the part that might surprise you. **American Express stock fell nearly 4% on the announcement** .

Why would investors punish a company that just beat earnings and raised guidance?

The answer is **billed business**. American Express reported **$454 billion** in card spending, below the **$456.9 billion** analysts expected . The miss was partly due to the company exiting some small-business co-brand deals. But it was a miss nonetheless.

Truist Securities analysts described the results as **“mixed”** — the earnings beat and guidance raise were positive, but slower growth in billed business was a disappointment .

There’s also the broader context. American Express stock is **down 12% year-to-date** . It’s trading roughly **18% below its 52-week high** of $384.89 . Investors are worried about expense growth, the sustainability of premium card spending, and the impact of a $350 million fine from the OCC and Federal Reserve over anti-money-laundering deficiencies .

The job cuts are a bet that the company can **grow revenue while shrinking its cost base**. If it works, the stock could recover. If it doesn’t, the restructuring will look like a costly distraction.

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## Frequently Asked Questions (FAQs)

### Q1: Why is American Express cutting jobs if it’s profitable?

American Express says the cuts are about **efficiency and agility**. The company wants to reduce management layers, speed up decision-making, and prepare for **greater use of artificial intelligence**. The restructuring is funded partly by the **$751 million after-tax gain** from selling its stake in Global Business Travel Group .

### Q2: How many jobs are being cut?

About **5% of the global workforce**, or roughly **3,500 jobs**. American Express employed approximately **78,000 people** before the announcement .

### Q3: What was the restructuring charge?

**$336 million**, or **$0.37 per share** on an adjusted basis. The charge was partly offset by the gain from the Global Business Travel sale .

### Q4: Did American Express beat earnings?

**Yes.** Adjusted EPS was **$4.68**, beating the **$4.48** consensus. Revenue was **$20.1 billion**, up **9%** year-over-year. The company raised its full-year profit forecast to **$18.30–$18.60 per share** (GAAP) or **$17.60–$17.90** (adjusted) .

### Q5: Why did the stock fall?

The stock fell because **billed business** — a measure of card spending — came in below expectations at **$454 billion** versus **$456.9 billion** expected. The company also faces a **$350 million fine** over anti-money-laundering deficiencies, and expenses rose **9%** .

### Q6: Is this the first major layoff at Amex?

It’s the **first major reduction in about a decade**, according to CNBC . The company has been investing heavily in premium card benefits and marketing, which has increased costs.

### Q7: How does AI factor into the job cuts?

The CFO said the restructuring is designed to **streamline processes before automating them**. “You don’t want to automate processes that are not optimally structured,” he said. The goal is to reduce layers and expand spans of control to make **future AI deployment easier** .

### Q8: What should American workers take away from this?

**Job security is no longer tied to company performance.** American Express is profitable, growing, and raising guidance — and it’s still cutting 3,500 jobs. The lesson: **skills that are hard to automate, and a willingness to adapt, are the only real job security in 2026.**

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## Conclusion: The New American Layoff

American Express just did something that would have been unthinkable a generation ago. It **raised its profit forecast and cut 3,500 jobs in the same announcement**. The stock fell, but the business is strong. The CEO is optimistic, but thousands of people are losing their livelihoods.

This is the new American layoff. It’s not driven by crisis. It’s driven by **optimization**. By the pursuit of efficiency. By the preparation for a future where AI does more of the work and humans do less.

For American workers, the message is uncomfortable but clear: **Your job is not safe just because your company is doing well.** The people who run American Express are making a rational decision for shareholders. They’re cutting costs to invest in growth. They’re streamlining to prepare for automation. They’re doing exactly what a public company is supposed to do.

But the 3,500 people who are about to lose their jobs didn’t get a vote. And they won’t be comforted by the earnings beat.

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## Disclaimer

This article is for informational and educational purposes only and does not constitute financial, investment, or employment advice. The information contained herein is based on publicly available sources as of October 23, 2026. Stock market investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. The author and publisher are not responsible for any financial decisions made based on the information presented in this article. Always consult a qualified financial advisor before making any investment decisions.

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