Credit card company American Express announced Thursday that it would slash 10% of its payroll, amounting to around 7,000 job cuts. The company expects to save $1.8 billion from the reduction, which stems from both the current economic crisis and an anticipation of further losses in the near future. Chairman and chief executive Kenneth Chenault noted that credit card spending and loans would probably be slow in the coming months, and that plans to reorganize were in preparation for future difficulty. The firm plans to implement additional measures as well, including a hiring freeze, suspension of raises, and a reduction in technology, business, and marketing development investments.
See "American Express Plans to Trim 7,000 Jobs to Save $1.8 Billion", Eric Dash, The New York Times, October 30, 2008