NEW YORK –
American Express Co. said Wednesday it plans to cut another 4,000 to 5,000 jobs in a bid to cut costs amid a lingering economic slowdown and plans to take a big write-down on the value of its investment portfolio.
The latest job cuts at the financial and travel-related services company would be in addition to the elimination of about 1,600 jobs announced earlier this year.
The combination of the job cuts represent a reduction of at least 7 percent from American Express' worldwide work force of 88,850 at the end of 2000.
Kenneth I. Chenault, chairman and chief executive of American Express, said the actions were being taken ``to ensure that we're in a strong position to navigate through what we expect to be a longer period of economic weakness.''
American Express also said it expects its second quarter earnings will decline 76 percent from a year ago to $740 million, or 54 cents a share. That reflects a charge of $537 million after taxes to write down the value of its high-yield investment portfolio and losses on shifting its holdings to lower-risk securities.
The company expects earnings of 53 cents a share excluding the high-yield portfolio losses, matching the expectations of analysts surveyed by Thomson Financial/First Call. The company will announce second-quarter results on July 23.