Job cuts and salary freeze at Amex
LONDON – American Express has announced plans to cut 7,000 jobs, or 10% of its global workforce, to cope with the economic crisis.
It said the reductions will occur “across business units, markets and staff groups primarily focusing on management and other positions that do not interact directly with customersâ€.
Amex is also freezing salaries for its managers for 2009 and implementing a hiring freeze for open positions.
It believes these actions will allow it to save $700 million in 2009.
Globally, Amex plans to save another US$125 million by cutting expenses for consulting and other professional services, travel and entertainment, and general overhead.
A complete ‘re-engineering’ of the company, which also includes scaling back investment spending, is expected to save a total of around US$1.8 billion in 2009.
“We’ve been engaged for the past few months in an intensive, company-wide review of priorities and staffing levels,†said chairman and chief executive officer Kenneth Chenault.
“The re-engineering programme will help us to manage through one of the most challenging economic environments we’ve seen in many decades.â€
By Bev Fearis
Ian Jarrett
Have your say Cancel reply
Subscribe/Login to Travel Mole Newsletter
Travel Mole Newsletter is a subscriber only travel trade news publication. If you are receiving this message, simply enter your email address to sign in or register if you are not. In order to display the B2B travel content that meets your business needs, we need to know who are and what are your business needs. ITR is free to our subscribers.
































Phocuswright reveals the world's largest travel markets in volume in 2025
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
In Italy, the Meloni government congratulates itself for its tourism achievements
Singapore to forbid entry to undesirable travelers with new no-boarding directive