Amex to lay off 5% of global staff

American Express is cutting 5% of its global workforce, roughly 3,500 jobs, to control rising expenses and streamline operations, according to CEO Stephen Squeri.

The job cuts come as the financial services company reported a 9% increase in third-quarter sales, driven by strong customer spending. The company also raised its annual profit outlook.

The layoff mirrors a broader industry trend. Barclays recently announced a 5% workforce reduction, eliminating 5,000 jobs. eBay is cutting 9% of its workforce, about 1,000 employees, and Volvo plans to slash 2,500 positions.

Data from Challenger, Gray & Christmas shows US employers announced 43,281 job cuts in September, a 20% year-over-year decline.

Experts attribute the layoffs to mounting business pressures, including high energy costs, uncertainty over the Iran war, interest rate hikes, and the possibility of rising healthcare expenses.