Amex to cut about 3,500 jobs as banks ramp up AI
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The gist
American Express will cut roughly 3,500 employees, 4.5% of its workforce, citing AI and efficiency.
Banks are betting on AI even as investors fear it could disrupt deposits.
Background
American Express, the card issuer led by CEO Stephen Squeri, is trimming its payroll to become more "agile and efficient" as it uses more artificial intelligence. The move lands in a week of AI-related bank news: Bank of America's co-president said the bank will double its AI budget next year, while the FDIC proposed loosening its bank merger review process. Investor nerves over AI were set off in September when Meta launched its Muse personal agent and shares of banks seen as exposed fell.
How it unfolded
- Sep 8, 2026Meta Platforms launched its Muse personal agent; shares of banks seen as vulnerable fell, including Bank of America (down 18%) and Charles Schwab (down 14%) through Wednesday's close.
- Sep 23, 2026Bank of America's co-president pointed to "clearly identifiable" gains from AI and said the bank plans to double its AI budget next year.
- Oct 14, 2026Bank of America was fined $1.21B over anti-money-laundering flaws; the Office of the Comptroller of the Currency said it failed to properly monitor trillions of dollars in transactions.
- Oct 23, 2026American Express said it will cut roughly 3,500 employees, 4.5% of its workforce, to become more "agile and efficient" amid increased use of AI, CEO Stephen Squeri said.
- Oct 23, 2026The FDIC proposed a rule overhauling its bank merger review process, reversing a 2024 policy statement under President Joe Biden that was widely seen as a roadblock to mergers.
- Oct 24, 2026The Central Bank of Egypt said stress tests showed its banking sector absorbed all losses from assumed shocks, with the 10 largest banks holding about 80% of sector assets.
Who’s saying what
- Bulls
- Banking analyst Mike Mayo said "Banks are AI beneficiaries, not AI roadkill."
- Official
- JPMorgan CEO Jamie Dimon said the bank blocks outside AI agents that rely on customers sharing login credentials, calling it "just too risky for clients and for JPMorgan."
- Official
- Bank of America CEO Brian Moynihan said "We strongly believe there should be a human in the loop to authorize money moving out of your account."
Still unverified
Analyst Cassidy raised an unresolved question of who would be responsible if an authorized AI agent mistakenly transferred money to the wrong account and the funds could not be recovered; responsibility for autonomous-agent mistakes remains unclear. Questions also swirl over how soon returns on AI investment will be seen.