American Express To Cut 5,400 Jobs | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

American Express To Cut 5,400 Jobs

American Express Co. announced Thursday that it was cutting 5,400 jobs, primarily in its travel business, and take a $287 million restructuring charge associated with those layoffs.

The charge is likely to lower the company's adjusted fourth quarter net income by 46 percent from a year earlier. Excluding the charge, however, the company said its fourth quarter adjusted net income was $1.2 billion, or $1.09 per share.

"Against the backdrop of an uneven economic recovery, these restructuring initiatives are designed to make American Express more nimble, more efficient and more effective in using our resources to drive growth," Chairman and CEO Kenneth Chenault said in a statement.

Here's more from Bloomberg:

The cuts account for about 8.5 percent of AmEx's 63,500- person workforce, a number that will be mitigated as the company refills some jobs, according to the statement. The total number of employees by year-end will drop by 4 percent to 6 percent and American Express expects to hold increases in annual operating expenses to less than 3 percent, the firm said.

The company said the job cuts will take place across "seniority levels, businesses and staff groups."

"The largest reductions will come in the travel businesses, which operate in an industry that is being fundamentally reinvented as a result of the digital revolution," the statement added.

Copyright 2013 National Public Radio. To see more, visit http://www.npr.org/.

WAMU 88.5

Second Annual Funk Parade To Take Over U Street

This weekend you can get funky on U Street with live music, a street festival and a parade, as tomorrow marks the second Funk Parade. Funk Parade organizers couldn't get a permit to march down U Street last year, but the crowd veered off V Street anyway to where co-founder Justin Rood always...
NPR

How Dangerous Is Powdered Alcohol?

Last month, the U.S. Alcohol and Tobacco Tax and Trade Bureau approved a powdered alcohol product, making both parents and lawmakers nervous. Some states have already banned powdered alcohol. NPR's Arun Rath speaks with Brent Roth of Wired, who made his own powdered concoction and put it to the test.
NPR

Obama Administration Forced To Defend Strategy Against ISIS In Iraq

On this Memorial Day, the Obama administration finds itself defending its foreign policy strategy in Iraq where the self-proclaimed Islamic State, also known as ISIS, has captured the city of Ramadi.
NPR

In California, Technology Makes "Droughtshaming" Easier Than Ever

As California's drought continues, social media and smart phone apps let just about anyone call out water waste, often very publicly.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.