American Express (AXP) Prelim. Q4 Numbers Top Views; Will Cut Thousands of Jobs
Revenue rose five percent to $8.1 billion, in-line with consensus expectations, while adjusted earnings of $1.09 per share topped views by three cents.
American Express also announced it would take a $400 million charge tied to a restructuring announce today. The company plans to cut 5,400 jobs, reducing its workforce of 63,500 by four to six percent in 2013. The company said that job reductions will take place "across seniority levels, businesses and staff groups." Reductions will also be in proportion between U.S. and International operations.
Against the backdrop of an uneven economic recovery, these restructuring initiatives are designed to make American Express more nimble, more efficient and more effective in using our resources to drive growth," commented CEO Ken Chenault. "For the next two years, our aim is to hold annual operating expense increases to less than 3 percent."
Along with the $400 million on restructuring, American Express will take a $342 million expense for Member Rewards redemptions and $153 million tied to cardmember reimbursements in arrears.
Shares are up about 1.2 percent late.