American Express Restructuring To Cut Cost By $1bn

In next two years cost cuts of $1 billion could be seen in American Express Company and as an aftermath layoffs and streamlining of divisions such as marketing could be seen.

After the announcement shares of the company is seen up by about 1 percent. On January 17 the stock rose by 0.79 percent or $0.42, hitting $53.6. A report writes nearly 8.64 million shares traded hands. However, the performance has declined 32.28 percent since last year July 13.

The company provides charge and credit payment card products along with travel-related services across the world. It operates through four segments – U.S. Card Services, International Card Services, Global Commercial Services, and Global Network & Merchant Services.

American Express competes with Visa (V), MasterCard (MA), PayPal (PYPL), Square (SQ) and several other companies, products and services.

CEO Kenneth Chenault said the restructuring is an attempt to fix problems in the company. He is streamlining the organization, reengineering key cross-business processes, and leveraging policy changes too.

In 2014 American Express had cut down its manpower by 14 percent to 54,000. Same was seen in 2015 too but the company has not yet released the count.

American Express was founded in 1850. It is headquartered in New York.