From American Express Company AXP release:
The restructuring charge mentioned above will consist largely of severance
payments related to the elimination of an estimated 5,400 jobs. Those
reductions will be partly offset by jobs the company expects to add during the
year. Overall staffing levels by year end 2013 are expected to be 4 to 6
percent less than the current total of 63,500.
Elements of the restructuring program include:
* Reengineering the business model in Global Business Travel to reduce its
cost structure and invest in capabilities that better align it with the
shift of customer volumes to online channels and automated servicing
tools;
* Continuing the reconfiguration of cardmember servicing and collections as
we drive efficiency through our global scale and as more customers use
online and mobile channels instead of paper and telephone;
* Reducing the size of our staff groups while continuing to maintain the
right focus and resources on risk and control activities;
* Ensuring that we have the right organizational structure across our client
management and sales functions to best serve our customers; and
* Consolidating similar functions and eliminating duplicate efforts wherever
possible in order to drive efficiency.
The job reductions will take place across seniority levels, businesses and
staff groups. The largest reductions will come in the travel businesses, which
operate in an industry that is being fundamentally reinvented as a result of
the digital revolution. Overall, reductions will be spread proportionally
between the U.S. and international markets and will primarily involve
positions that do not directly generate revenue.
Changes within the customer service organization are designed to help us
continue to deliver award-winning service and operate at maximum efficiency as
more customers and merchants do business with us through online and mobile
alternatives.
“Against the backdrop of an uneven economic recovery, these restructuring
initiatives are designed to make American Express more nimble, more efficient
and more effective in using our resources to drive growth,” said Mr. Chenault.
“For the next two years, our aim is to hold annual operating expense increases
to less than 3 percent.^2 The overall restructuring program will put us in a
better position as we seek to deliver strong results for shareholders and to
maintain marketing and promotion investments at about 9 percent of revenues.”
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