Credit card provider American Express has confirmed it will cut 5,400 jobs from its global workforce, with the brunt of losses being borne by the travel division.
The cuts will be from a total workforce of approximately 63,500 and are expected to be completed by the end of the year.
American Express recorded nearly $600 million in after-tax charges in the fourth quarter of 2012.
These charges are expected to halve its net profit for the quarter from $1.2 billion to $637 million.
The company said the majority of job losses would be in its travel business, which is being “fundamentally reinvented as a result of the digital revolution”.
American Express said it was having to adapt parts of the business as more customers make payments online or via mobile.