AmEx Details New Direction

NEW YORK (TheStreet) - American Express (AXP Quote) is streamlining its technology and operations units and ramping up its focus on payments processing, especially in emerging markets, as it positions itself to deal with what it terms a "new normal" of slower billings growth.

AmEx discussed its strategic direction in a memo to employees from Ken Chenault, the company's chairman and CEO. The release of the memo coincided with news of the resignation of Alfred F. Kelly Jr. from the president position. Kelly will remain with the company until early in 2010. A desire to eventually become a CEO was the stated reason for Kelly's departure.

"In the context of discussions we have had about longer term plans for the organization, Al made clear to me that he wanted the opportunity to run a company as chief executive," said Chenault in a statement. "Given my own plans for the coming years, we both agreed that was not likely to happen at American Express in the short term."

AmEx shares rose 2.3% to $33.22 on Monday. Volume of 9.5 million was below the issue's three-month daily average of 14.6 million. The stock has fared well of late, gaining nearly 16% since the beginning of August.

With Kelly leaving, AmEx's three largest businesses -- global consumer, small business and its merchant processing -- will now report to Edward Gilligan, its vice chairman.

As part of the organizational shake-up, AmEx is establishing two new units. The first is Global Services, which will combine the firm's U.S. and international customer service, technology, operations, business processing and information management into a single division. The operation will be headed by Stephen Squeri, who was formerly the company's chief information officer.