American Express layoffs: Thousands of roles slashed in AI push as job losses in financial services pile up

In a series of recent layoffs, two major financial institutions have announced the elimination of thousands of jobs due to their push into artificial intelligence. Earlier this week, Barclays announced a 5% workforce reduction, equivalent to around 5,000 positions, as it transitions operations to AI systems. Today, American Express made a similar announcement, cutting 5% of its global workforce, which amounts to approximately 3,840 employees, as it moves to become more agile and efficient.

American Express CEO Stephen Squeri attributed the layoffs to his company's drive to accelerate innovation and improve its operational capacity. He explained that the restructuring would help automate processes, take advantage of AI, and ultimately increase the company's ability to invest in its priorities. CFO Christophe Le Caillec added that the restructuring would reduce layers and increase control spans to facilitate AI adoption.

Despite the job losses, American Express's stock price fell shortly after the announcement but was likely not directly tied to the layoffs. Wall Street often views job cuts as a means to reduce costs and boost profitability. The company reported a record Q3 2026 revenue of $20.1 billion, up 9% year-over-year, and a net income of $3.7 billion, an increase from $2.9 billion a year earlier. However, the stock price has since fallen around 3%, likely due to broader market declines and the ongoing U.S. conflict with Iran.

The trend of job cuts in the banking sector is not limited to Barclays and American Express. Earlier this year, Citi and HSBC each reduced their workforces by 10%, while Standard Chartered announced plans to cut 15% of its workforce by 2030.