NEW YORK – American Express (AXP) said Friday it expects to record a fourth-quarter pre-tax charge of up to $120 million and cut 2,000 jobs related to a restructuring of its business travel unit and the sale of some overseas operations.
The moves are not expected to have a material impact on the company's quarterly net income, since it also expects to record a gain associated with its previously-announced sale, American Express said in a filing with regulators.
Of the 2,000 job cuts, up to 400 could be transferred to the acquirers of certain American Express Bank (search) operations in Bangladesh, Egypt, Luxembourg and Pakistan slated to be sold.
The restructuring charge, which will likely tally between $100 million and $120 million, includes severance payments of between $80 million and $90 million.
The company expects to take additional charges of between $45 million and $55 million during 2005. Once the restructuring is completed, American Express estimates it will result in pre-tax benefits of more than $75 million annually.
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