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American Express to Eliminate 4,000 Jobs, Cut Other Costs

May 18, 2009

Jeremy Nisen--HispanicBusiness.com

American Express (NYSE:AXP) today announced several cost-saving initiatives, including the elimination of about 4,000 jobs, or close to 6 percent of the company's worldwide workforce. The layoffs will account for approximately $175 million of the $800 million in savings that American Express is aiming to save for the remainder of 2009.

The most significant cost saving measure in terms of dollar amount is a cutback in spending on marketing and business development to the tune of about $500 million. The final step cited by American Express is reducing consulting and other professional services, travel, and general overhead for a benefit of approximately $125 million.

The company's stock closed the day at $26.13 per share, $1.90 greater than it did on Friday.

Source: HispanicBusiness.com (c) 2009. All rights reserved.