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AmEx Will Lay Off 7K

Pay increases, hiring halted to prop up credit-card giant's savings

By Ambreen Ali, Newser User

Posted Oct 30, 2008 12:26 PM CDT

(Newser) – Noting that even wealthy Americans are struggling financially, American Express announced today it will cut 10% of its workforce, halt executive pay increases, and freeze new hires. The creditor to the elite will charge $440 million against fourth-quarter results to cover restructuring after 7,000 jobs are cut across all units, MarketWatch reports. AmEx shares were trading 2% higher this morning.

Analysts worry that other credit card companies will also suffer as the crisis ensues. (Getty Images)

American Express will cut 10% of its workforce to prop up its savings. (AP Photo)

AmEx, which lost half its market value this year, was trading 2% higher this morning. (AP Photo/Mark Lennihan, File)

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AmEx Will Lay Off 7K

Pay increases, hiring halted to prop up credit-card giant's savings

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AmEx Will Lay Off 7K

Pay increases, hiring halted to prop up credit-card giant's savings

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OTHER STORIES ON OUR RADAR

layoffs • American Express • credit card • credit card loans • financial crisis

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

AmEx to Clients: Here's $300, Now Get Lost

Credit card firm looks to limit exposure

Smarting, Credit Card Companies Cut Rewards

That airline ticket won't be so easily obtained in recession

Lenders Yank Credit Cards as Economy Sours

Plastic crisis comes hot on the heels of mortgage crisis

AmEx Sees Red as Cardholders Struggle

Credit card company is seeing more cards fall delinquent as economy worsens

American Express Feels Credit Crunch

With defaults on rise, company taking hefty fourth-quarter charge

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?