Amex to cut 5,000 staff worldwide

American Express has announced plans to cut approximately 5,400 jobs worldwide by the end of 2013.

The credit card provider says it booked a $US400 million charge in the fourth quarter of 2012 to cover the one-off cost of the lay-offs.

It also took another $US500 million in one-off costs relating to other areas of its business, including reimbursements to some customers.

The company says the charges will halve its net profit for the quarter.

Amex says the majority of the job losses will be in its travel business, which is being fundamentally reinvented as a result of the digital revolution and increased automation.

It is also reducing staff levels in its card member service and collections departments as more customers use online and mobile channels to take care of their accounts.

American Express says it has to adapt parts of the business as more customers make payments online or via mobile.

The company says hiring in other areas will offset some of the redundancies, leaving a net reduction of between 2,500 and 3,800 in its total workforce, which currently numbers 63,500.

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