AmEx to cut 7,000 jobs

[Amerigo Vespucci]

Source: CNN

NEW YORK (CNNMoney.com) -- American Express Co. said Thursday it will cut 7,000 jobs as part of a restructuring plan aimed at cutting costs to cope with difficult economic conditions.

The credit card company said the reductions will amount to about 10% of its worldwide workforce and will result in a pretax charge of up to $440 million in the current quarter. But AmEx said the restructuring will ultimately generate a $1.8 billion cost benefit next year.

American Express said cuts will occur across all of the company's business units, markets and staff groups, but will focus on management positions. The company is also suspending management level salary increases for 2009 and instituting a hiring freeze.

"The reengineering program we announced today will help us to manage through one of the most challenging economic environments we've seen in many decades," said Kenneth Chenault, American Express CEO, in a statement.

Read more: http://money.cnn.com/2008/10/30/news/companies/Amex_layoffs/index.htm

[ChromeFoundry]

1. Too much mass job loss...

K&R

[OhioChick]

2. Agreed.

I just posted this, didn't see it here. Thought it would get a bit of exposure.....what are all of these people going to do?

[Azlady]

3. Man, that is alot of jobs... geez

[SpiralHawk]

4. The putrid fruit of republiconomics

[SpiralHawk]

5. The putrid fruit of republiconomics

[femrap]

6. Now it's the middle managers who are

getting the boot....all those folks with College Degrees.

We should do as Mr. Kellogg (of Grand Rapids and cereal fame) did...institute the 6 hour day. He was a cool man who thought his workers should be citizens, not consumers.