American Express Q3 Profit Jumps 28% to $3.71 Billion, Cuts 5% of Workforce

American Express reported third-quarter profit of $3.71 billion, up 28% from a year ago, or $5.42 a share, while announcing it laid off 5% of its workforce — roughly 4,000 employees — last quarter, its first major job cuts in about a decade. Excluding a one-time gain from the sale of its stake in Global Business Travel Group, the New York company earned $4.68 a share, beating Wall Street estimates. Net card fees rose more than $400 million year over year as nearly all members migrated to the Platinum Card's higher $895 annual fee, up from $695. Average customer spending reached $6,735 last quarter, or $2,245 a month, up 5% from a year earlier. CEO Steve Squeri said the layoffs were aimed at improving efficiency, not a response to a business downturn, addressing investor concerns over rising operating costs amid competition with Capital One and JPMorgan Chase. AmEx raised the low end of its full-year adjusted profit forecast to $17.60 to $17.90 per share, from $17.30 to $17.90 previously.