Tags: american express, Business, credit card, cut job, economic crisis
In a stark acknowledgment of the tough times ahead in the credit card industry, American Express Co. said Thursday that it plans to cut 7,000 jobs, or about 10% of its worldwide work force, in an effort to slash costs by $1.8 billion in 2009.
The Manhattan-based credit card issuer said it is also suspending management level salary increases next year and instituting a hiring freeze.
The job cuts will be across various business units, but will primarily focus on management positions, the company said.
Additionally, American Express said it plans to scale back investments in technology and marketing and business development, and streamline costs associated with some rewards programs. The company also expects to cut expenses for consulting and other professional services, travel and entertainment and general overhead.
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