Amex to cut 550 positions
(20 January 2010 – Global) American Express has announced a US$113 million restructuring charge as a result of plans to "consolidate locations" within its global servicing network, cutting the overall workforce by around 550 positions.
The card giant is closing the doors on a site in North Carolina and is transferring the work to other US locations.
Work currently carried out in Madrid may be moved to Brighton in the United Kingdom and Buenos Aries, Argentina.
Also to be reshuffled is the support business for the Japanese card business currently located in Sydney, which will shift to Japan.
Overall, headcount will fall by 550 but because the 'reengineering initiatives' involved in relocating work to different locations, about 3500 existing positions will be affected.
Amex says it will record fourth quarter charges of US$113 million, or US$74 million after-tax.
The cuts reflect an overall decline in service volumes as more and more routine transactions have migrated to online and mobile channels, claims Amex. This has led it to stop filling roles when staff leave, meaning facilities are operating under capacity and real-estate-related costs too high.
Work currently carried out in Madrid may be moved to Brighton in the United Kingdom and Buenos Aries, Argentina.
Also to be reshuffled is the support business for the Japanese card business currently located in Sydney, which will shift to Japan.
Overall, headcount will fall by 550 but because the 'reengineering initiatives' involved in relocating work to different locations, about 3500 existing positions will be affected.
Amex says it will record fourth quarter charges of US$113 million, or US$74 million after-tax.
The cuts reflect an overall decline in service volumes as more and more routine transactions have migrated to online and mobile channels, claims Amex. This has led it to stop filling roles when staff leave, meaning facilities are operating under capacity and real-estate-related costs too high.
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