American Express to cut 10% of workforce.

October 30, 2008 – 1:57 pm – No Comment

American Express is also going through some hard times, in an effort to cut $1.8 billion in 2009, it is laying off 7,000 workers, about the equivalent of 10% of its workforce. After four straight quarters of losses, not only is Amex going to lay off the workers, but is also going to suspend pay increases for management and not hire any new applicants.

The company said that it plans to scale down marketing, development, and technology advancements to help with the budget cut. As a result, most of the 7,000 employees to be laid off will be management.

Here’s another big company that has to reduce their workforce to cut the budget. It seems like this scenerio is happening more and more. With retail sales down and people more focused on not using their credit cards, American Express is likely not to be the only company to resort to huge layoffs.