American Express has recently announced a cutback of 7,000 jobs, equating to 10% of its total global work force. The cuts are primarily across business units, markets and staff groups focusing on management and positions that do not interact directly with customers, according to a company statement.
It has also implemented a freeze on all management salaries and starter wages in an attempt to save $700 million, in addition as well as saving $125million by cutting back on consulting and other professional services, travel and entertainment, and general overheads.
Few losses are thought to affect the 6,000 people employed in the UK, the majority 4,000 based in Brighton and Burgess Hill.
Scaling back investment spending and a general redirection of the company is expected to save them a further $1.8 billion in 2009.
“We’ve been engaged for the past few months in an intensive, companywide review of priorities and staffing levels,” said chairman and chief executive officer Kenneth I. Chenault.
“The reengineering programme will help us to manage through one of the most challenging economic environments we’ve seen in many decades.”
“It will also put us in position to ramp-up investment spending as economic conditions improve so that we can take advantage of the substantial opportunities that will be available to us over the medium to long term.”