(MENAFN- Khaleej Times) American Express will eliminate 5,400 jobs this year, mostly in travel services, as consumers and businesses rely more on digital technology for bookings.
The lender posted a 47 per cent drop in fourth-quarter profit and recorded after-tax charges totalling $594 million, including costs tied to severance and changes in how the firm estimates future redemptions of credit-card rewards, New York- based AmEx said on Thursday in a statement.
"Travel has gone through a great deal of change," chief executive officer Kenneth I. Chenault said in a conference call with analysts. The economics of corporate travel has "changed more dramatically over the years than any part of the business."
American Express, the biggest US credit-card issuer by purchases, also provides clients worldwide with travel-booking and advisory services. Competitors include Internet firms Priceline.com, the most valuable online-travel agency, and Expedia.
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