American Express (AmEx) announced today that it will cut approximately 5% of its workforce as part of a $336 million restructuring plan. Despite the significant layoffs, the company only raised the midpoint of its full-year 2026 adjusted profit forecast by 0.85% to $17.75 per share. Following this news, American Express shares fell 3.7% during midday trading in New York.

Additionally, American Express was fined $350 million for failing to detect $13 billion in suspicious money laundering activities. The Office of the Comptroller of the Currency (OCC) had noted 15 days before the layoff announcement that American Express's anti-money laundering program was under-resourced. The company's CFO stated that the layoffs are intended to make the company "leaner, more agile, and ready for AI."