American Express is cutting about 3,500 jobs to make room for AI

American Express $AXP is cutting about 3,500 positions, which equals 5% of employees worldwide, according to Reuters, in a reorganization meant to get the company ready for artificial intelligence.

CEO Stephen Squeri disclosed the cut to analysts during a Friday conference call about the quarter's results, according to CNBC. The company reported third-quarter results that include a $336 million pretax restructuring charge tied to efficiency initiatives. American Express said it used part of the gain from selling its stake in Global Business Travel Group to fund the restructuring.

CFO Christophe Le Caillec told CNBC the restructuring is meant to make the company "leaner, more agile, and also to prepare for AI."

"You don't want to automate processes that are not optimally structured," Le Caillec said. "So what we're doing here is to reduce layers and increase spans of controls, so that we can automate and take advantage of AI in the coming quarters and the coming years."

Squeri said on the call that the company has momentum but needed a different structure. "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," he said, according to CNBC.

The reductions follow comparable moves in financial services. Barclays confirmed on Thursday that it plans to cut 5,000 positions, also about 5% of its employees, according to CNBC.

American Express raised its full-year earnings forecast on Friday after third-quarter revenue rose 9% to $20.1 billion on higher card spending. The company now expects 2026 earnings per share of $18.30 to $18.60, or $17.60 to $17.90 on an adjusted basis.

Third-quarter adjusted earnings per share rose 13% to $4.68. The adjusted figure excludes a $982 million pretax gain from the Global Business Travel Group sale, net of the portion of the gain used to fund the restructuring.

American Express stock fell in morning trading on Friday.