American Express announced it will reduce its workforce by approximately 5%, affecting thousands of employees as part of a broader restructuring effort aimed at integrating artificial intelligence into its internal operations. The announcement came on Friday alongside the company’s release of better-than-expected third-quarter earnings.

The credit card company, which employs around 77,000 people globally, said the job cuts will incur a restructuring charge of $336 million. Christophe Le Caillec, American Express’s chief financial officer, explained that the reorganization is designed to make the company "leaner" and more agile, positioning it to leverage AI technologies in the future.

Le Caillec emphasized the importance of streamlining processes before automation can be effective, noting, “You don’t want to automate processes that are not optimally structured.” He described the strategy as a reduction of management layers and an increase in spans of control, which will facilitate the use of AI in the coming quarters and years.

Following the announcement, American Express shares fell more than 3%, reflecting investor concerns about the impact of AI-driven automation on jobs. The layoffs at American Express come amid a wave of job cuts in the financial and technology sectors fueled by similar technological advances. This week, British bank Barclays, online marketplace eBay, and automotive manufacturer Volvo also announced plans to reduce their workforces by thousands.

The move signals ongoing shifts in how major corporations are adapting to AI and automation, balancing cost reduction with efforts to improve operational efficiency and future competitiveness.