Facebook Twitter

Credit card firm to cut 4,000 jobs

SHARE Credit card firm to cut 4,000 jobs

NEW YORK — American Express Co. warned of significantly lower second-quarter earnings and announced plans to slash another 4,000 to 5,000 jobs this year in a bid to cut costs amid a lingering economic slowdown.

The New York-based financial services and travel-related company also said Wednesday it was significantly reducing its exposure to high-risk investments.

The latest job cuts would be in addition to the elimination of about 1,600 jobs announced earlier this year.

The combination of the job cuts represent a reduction of about 7 percent from American Express' worldwide work force of 88,850 at the end of 2000. The company will announce second-quarter results on July 23.

American Express said it expects its second quarter earnings will decline 76 percent from the $740 million, or 54 cents a share, earned a year ago. That reflects a charge of $826 million before taxes to write down the value of its high-yield investment portfolio and losses on shifting its holdings to lower-risk securities.

The company expects earnings of 53 cents a share, excluding the high-yield portfolio losses, matching the expectations of analysts surveyed by Thomson Financial/First Call.

The company will announce second-quarter results on July 23.