American Express announced that it would be downsizing its workforce by 10%, or 7,000 jobs. This purportedly is in an effort to "cut costs" by $1.8b next year.
Jobs given the axe are mostly management positions, but span the breadth and width of the company.
Q3 2008 marks the 4th straight quarter that American Express has posted a loss. Profits down 24% this quarter.
They also announced a tentative plan to freeze raises for management-level employees and to implement a hiring freeze. In addition, they plan to take a $240-$290m "restructuring charge" in Q4 2008.
Nice guys, they still just approved me for a card!
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In essence, 7,000 less paychecks coming down the pike. Tightened up spending by those who are unsure if they're the ones to be affected. Then on top of it all, salary freeze while inflation whittles away at purchasing power.They're all going to have credit and buying power reduced. Less consumerism.
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