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Fiji Time: 12:50 PM on Thursday 17 April

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5400 lose jobs

Bbc.Co.Uk
Saturday, January 12, 2013

AMERICAN Express has announced plans to cut 5400 jobs worldwide from its total workforce of 63,500 by the end of 2013.

The credit card provider said it took almost $US600m ($F1.059billion) in after-tax charges in the fourth quarter of 2012.

The company said those charges would halve its net profit for the quarter from $US1.2bn ($F2.11b) to $US637m ($F1.124b).

It said the majority of the job losses would be in its travel business, which is being "fundamentally reinvented as a result of the digital revolution".

American Express said it had to adapt parts of the business as more customers made payments online or via mobile.

It added the job losses would be spread proportionally between the US and international markets.

The charges include restructuring costs of $US287m ($F506m) mostly related to redundancy payments, $US212m ($F374.2m) for Membership Rewards expenses and $US95m ($F167.6m) for card member reimbursements