American Express to Cut 550 Jobs
American Express said on Wednesday that it would close customer service centers and cut 550 jobs as it helps more people on the Internet, a move that will cost the company $74 million after taxes.
The company, a credit card lender and payment processing network, will move another 3,000 jobs to different locations as part of its reorganization, it said.
The restructuring charge will reduce fourth-quarter profit by 6 cents a share. American Express, which was scheduled to report its quarterly earnings Monday, said it earned $1.1 billion, or 88 cents a share, in the quarter.
Excluding the charge, the company’s 94-cent profit missed analysts’ average expectations by a penny, according to Thomson Reuters. American Express shares fell 2.44 percent to close at $45.24.
The earnings miss was an unpleasant surprise to some investors, considering positive trends on spending volume and credit, an analyst at Sandler O’Neill, Michael Taiano, said...
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