American Express to Cut 4,000 Jobs
American Express Co. said it would eliminate 4,000 jobs later this year, but the company’s cost cutting isn’t moving fast enough for some investors.
The New York credit-card firm is struggling to meet revenue targets in a competitive environment, and an uptick in the company’s expenses in the fourth quarter worried some that a crucial advantage for the company in recent years may be fading.
AmEx of late has been falling short of its longtime revenue-growth target of 8%, but the company has been able to meet earnings expectations, in part by controlling expenses.
On Wednesday, Amex shares fell about 2% in after-hours trading as the company disclosed a 3% increase in its expenses as part of its quarterly earnings report. Amex’s revenue and profit increased, but not enough to satisfy investors who have grown increasingly demanding of the company’s results as the economy grows, consumers repair their balance sheets and more people switch from using cash or checks to plastic.
http://www.wsj.com/articles/american-express-results-rise-as-cardmember-spending-grows-1421874662
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