American Express to Cut 7,000 Jobs
Posted on: Thursday, 30 October 2008, 15:00 CDT
U.S. credit card giant American Express said Thursday it would eliminate 7,000 jobs in a global 10 percent workforce reduction plan.
The effort was part of a strategy to reduce costs by $1.8 billion in 2009, the company said in a statement.
As part of the plan, the company would scale back investment spending, reduce consulting and other professional services, pull back on technical development, freeze hiring for open positions, suspend raises for management level positions and streamline costs on "travel and entertainment and general overhead," the statement said.
The company said it expected to realize a savings of $700 million in 2009 from its staffing and "compensation-related decisions," the statement said.
American Express said it will also "move forward with pricing initiatives designed to generate significant additional revenues next year."
The changes "will help us manage through one of the most challenging economic environments we've seen in many decades," American Express Chairman and Chief Executive Officer Kenneth Chenault said.
Source: United Press International
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