American Express announced plans to reduce spending on marketing and business development to help it save $500 million this year.
The company will also cut 4,000 jobs, or about 6% of its
workforce, which will save it $175 million in 2009. The company said it will take a restructuring charge of $180 million to $250 million, before tax, in the second quarter to pay for severance and
other costs related to the workforce reduction.
The company also hopes to save $125 million by cutting expenses for travel, general overhead and consulting and other professional
services.--Tanya Irwin