American Express said on Monday it was eliminating about 4,000 jobs as part of a plan to slash another US$800 million in costs for the remainder of the year.
The layoffs represent about 6 percent of the New York-based credit card issuer’s global workforce.
Many of the affected workers were notified in recent days and the remainder would be notified in coming weeks, company spokeswoman Joanna Lambert said.
Lambert could not specify how many US workers would be laid off, but said cuts would be across the board.
The newest plan follows US$1.8 billion in cost cuts — including 7,000 layoffs — announced in October. The company also suspended management-level salary increases and instituted a hiring freeze at the time.
As part of the newest cost-cutting plan, American Express also plans to scale back investment spending and make further cuts to operating costs, including professional services and travel.
“While we have remained solidly profitable at a time when some parts of the card industry were incurring substantial losses, we continue to be very cautious about the economic outlook and are therefore moving forward with additional reengineering efforts to help further reduce our operating costs,” chairman and chief executive officer Kenneth Chenault said in a release.
The 4,000 layoffs will result in a restructuring charge of between US$180 million and US$250 million in the second quarter, it said.
The deep cost cutting shows even a company like American Express, which prides itself on catering to a more affluent clientele, is not immune to the pullback in consumer spending.
The company’s customers are more heavily concentrated in California and Florida, where the slumping housing market is taking a toll. American Express also has a higher percentage of small-business customers and small businesses tend to miss payments more than individuals, executives have said.
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