New York based, American Express is mulling over to cut around 5400 jobs in the current financial year, mainly in travel division. And they would take about $600 million in after-tax charges in the fourth quarter.
The company said that they are expecting to reduce around 4 to 6 per cent of the total workforce by the end of 2013 and some of the cuts would be offset by new hiring. American Express currently employs around 63,500 people.
American Express said the reductions would be spread proportionately between the US and international markets.
Chief Executive of AmEx, Mr. Kenneth Chenault said, "For the next two years, our aim is to hold annual operating expense increases to less than 3 per cent".
The company also said that the card member spending grew 8 per cent in the fourth quarter, the third straight quarter of single-digit growth after nine quarters of double-digit growth.
AmEx expects to report a profit of $637 million, or 56 cents per share, including the charges.