Wired PR News.com – American Express has been added to the list of large companies that have turned to mass layoffs for cost reduction measures. A reported by the Associated Press, the corporation will cut 7,000 jobs to accommodate for the anticipated financial burdens that lay ahead.
American Express, based in New York, has seen a steady decline in profits due to the effects the economy has had on consumers, and their ability to repay credit card debt. The mass job cuts will reportedly save the credit card giant an estimated $1.8 billion in the upcoming year. The number of cuts will represent about 10 percent of the company’s work force. The report states that American Express plans to cut costs in other areas as well including marketing and technological investments.
Other credit issuing enterprises have been shown to have significant profit declines as well in their last few quarters. These include Citigroup Inc. and Capital One Financial Corporation. The losses reflect growing issues with consumer debt and a reduction in consumer spending.
Photo Credit – Jim Henderson
Story by: Dallas Wired PR News Correspondent – Tiffany Cherry