American Express to Cut 2,000 Jobs

[MindLikeAParachute]

NEW YORK - American Express Co. Friday said it will cut 2,000 jobs, or 2.5 percent of its work force, in a restructuring designed to save more than $75 million a year before taxes.

The restructuring includes the company's business-travel operations, the sale of its banking operations in Bangladesh, Egypt, Luxembourg and Pakistan; and the relocation of some finance operations.

It said about 400 positions may be transferred to acquirers in the sale of the banking operations.

The cost of the cuts is expected to lower fourth-quarter earnings, before taxes, by $100 million to $120 million, the New York-based financial-services company said.

The total expected charge includes about $80 million to $90 million for employee severance packages, and about $20 million to $30 million in other costs mainly from the early termination of property leases, the company said.
http://news.yahoo.com/news?tmpl=story&u=/ap/20041217/ap_on_bi_ge/american_express_job_cuts

[Career Prole]

1. "...designed to save more than $75 million a year before taxes"

Pfffft...I wonder how much they actually pay in taxes.

"Designed to save" means designed to fatten their already bloated wallets.
Can't believe they have any need to scrimp to keep from going broke.

[UpInArms]

2. contributors and recipients list

http://www.opensecrets.org/indivs/search.asp?NumOfThou=0&txtName=&txtState=%28all+states%29&txtZip=&txtEmploy=american+express&txtCand=&txt2004=Y&Order=A

CASH, THOMAS A
SHORT HILLS,NJ 07078

AMERICAN EXPRESS COMPANY

7/13/2004

$25,000

National Republican Senatorial Cmte

LYNTON, CAROL MS
NEW YORK,NY 10024

AMERICAN EXPRESS/INVESTMENTS

6/30/2004

$20,000

DNC Services Corp

CASH, THOMAS A
SHORT HILLS,NJ 07078

AMERICAN EXPRESS COMPANY

10/28/2003

$15,000

National Republican Senatorial Cmte

[jdots]

3. The card will now now be called Indian Express

alot of the computer jobs will be outsorced to India.When the neocons crash our economy the jobs will be insorced back to America so worker here can make 2 dollars a day.

[llmart]

4. Look at that Bush job machine go!!!!

Hope the ones getting laid off are all repukes. Serves them right.

I'm sure these layoffs aren't going to affect the guys at the top though. They'll just get rewarded for making the bottom line look great (today anyway).