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AMEX: To cut 7,000 jobs

Published:

Last Edited: October 30, 2008, 11:38 am

American Express to cut 7,000 jobs, save $1.8 billion

Thu Oct 30, 2008 11:34am EDT

NEW YORK (Reuters) - American Express said on Thursday that it would cut 7,000 jobs, lower compensations, reduce operating costs and scale back investments to save $1.8 billion in 2009 as it struggles with the worst financial crisis in decades.

Shares of the company were up 2.7 percent at $15.90 in morning New York Stock Exchange trade.

The company will take a restructuring charge of $370 million to $440 million pretax, or $240 million to $290 million after taxes, in the fourth quarter.

"The charge is primarily associated with severance and other costs related to the elimination of approximately 7,000 jobs or about 10 percent of the Company's worldwide workforce," American Express said in a statement.

American Express posted lower earnings for the third quarter as it set aside more money to cover growing losses in its credit card business.

(Reporting by Juan Lagorio; Editing by Lisa Von Ahn)

Entry #418

Comments

1.
NBey6Comment by NBey6 - October 30, 2008, 11:41 am
7000, 180, 270, 1590, 370, 440, 240, 290

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