American Express announced plans to reduce its global workforce by approximately 3,500 jobs, equivalent to around 5 percent of its staff, as part of a broader strategy to control rising costs and enhance organizational efficiency. The announcement was made on Friday alongside the company’s third-quarter financial results.

Chief Executive Officer Stephen Squeri described the job cuts as a necessary step to streamline operations and refocus investments on key business priorities. Speaking during a conference call with analysts, Squeri emphasized the need to accelerate innovation and improve agility to maintain momentum in a competitive market. Despite the workforce reduction, American Express reported a 9 percent increase in sales for the third quarter and raised its profit forecast for the full year, citing strong customer spending and growth in card member acquisition and retention.

The company’s shares declined by as much as 3 percent in early trading following the announcement.

The layoffs at American Express come amid a wave of job cuts announced recently by other major employers. On Thursday, Barclays revealed plans to eliminate 5,000 positions, representing 5 percent of its workforce, as part of cost-cutting efforts. Earlier in the week, eBay disclosed intentions to reduce its workforce by about 1,000 employees, or 9 percent, marking a continuation of layoffs after a 6.5 percent reduction earlier this year. Additionally, Volvo announced it would cut 2,500 jobs, roughly 6 percent of its staff, to navigate challenges in the Chinese automotive market and increased competition. The Swedish automaker, majority-owned by a Chinese company, had previously cut 3,000 jobs this year and is seeking to save $500 million (US). Volvo’s shares dropped 25 percent on Friday.

Data from outplacement firm Challenger, Gray & Christmas shows that US-based employers announced 43,281 job cuts in September, a 20 percent decrease compared with the same month last year. Year-to-date, 573,195 job cuts have been reported, down 39 percent from the first nine months of 2025, which saw significant federal downsizing under the Trump administration.

Andy Challenger, a workplace expert with the firm, noted that companies are contending with several economic pressures, including elevated energy costs, geopolitical uncertainty related to the conflict in Iran, potential interest rate increases that could raise hiring costs, and likely surges in healthcare expenses.