One of the better positioned credit card companies American Express is seeking to add to the 7,000 layoffs it has already announced last year in order to further its cost cuts that aim to improve its financial standing. The write-offs the firm has witnessed a higher 8.5% of its loans, up from 6.7% in Q4 and 4.3% from a year earlier.
From the WSJ:
The New York company said it would eliminate 4,000 jobs, or 6% of its work force, mostly though layoffs.
About $500 million in additional savings will come from cutbacks in marketing and business development. Those are two areas in which AmEx historically has poured investment dollars.
It is also hoping to return the $3.4bn TARP money it received soon. So far, JP Morgan, Goldman Sachs and Morgan Stanley are expected the first three of the biggest banks to pay back.