American Express to Cut 4,000 Jobs
May 19, 2009 by Stephen Kersey
Filed under Business
In an effort to save money for the rest of the 2009, American Express will cut approximately 4,000 jobs. Prior to the job cuts, the company was said to have a global workforce of more than 65,000 employees.
In addition to cutting jobs, American Express will also institute a freeze on raises and new hirings. When all is said and done American Express hopes to save about $800 million before the start of 2010.
“We believe these efforts will put us in a better position to remain profitable,” said American Express CEO Kenneth I. Chenault, “and free up some additional resources that will be reinvested in the business to make sure we can take competitive advantage of opportunities as the economy begins to rebound.”
While American Express has been able to avoid disaster in this national economic downturn, many industry experts believed the company needed to do more to cut costs. This latest move will probably be seen as a good move.
American Express Layoffs (Image: Flickr)
