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23 January 2013

American Express to Cut 8.5% of Staff

American Express, the largest U.S. operator of credit cards, plans to cut nearly 5.5 thousand employees, that is equal to 8.5% of jobs in the company. The reason for such deep cuts was the intention of the company to optimize costs, and the transfer of some operations online.

Costs of AmEx for cut of the staff accounts for about $400 million, while profit for the Q4 2012, according to analysts, accounted for more than $600 million.

It is reported that AmEx revenue growth is associated with increased expenditures of cardholders and a higher interest rate on loans.

RBK



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