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September 2022, Virtual
September 29 2022, Virtual
American Express’ business travel operation is to bear the brunt of an estimated 5,400 jobs that will be cut across the company’s worldwide operations.
Amex said that it would cut costs as part of a “re-engineering” of its corporate travel division which had become necessary because of the increasing trend towards more online bookings and automated tools.
“The job reductions will take place across seniority levels, businesses and staff groups,” said Amex in a statement.
“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 US and international markets and will primarily involve positions that do not directly generate revenue.”
Amex added that it would be investing in “capabilities that better align it with the shift of customer volumes to online channels and automated servicing tools”.
Amex CEO Kenneth Chenault said: “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.”
American Express Business Travel is the UK’s third largest TMC – according to Buying Business Travel’s 2012 guide to the 50 Leading TMCs.
Amex currently has 63,500 employees across all of its divisions around the world. But this will drop to around 60,000 by the end of this year as some new roles will be created alongside the planned cuts.