AmEx Lays Off 10% in $1.8B Cost-Saving Plan

American Express (AXP Quote) is cutting roughly 10% of its workforce as part of company-wide restructuring plan expected to save $1.8 billion in the face of the difficult economic environment.

Through the initiative the New York travel and card services giant said it is reducing staffing levels by roughly 7,000 employees and related compensation expenses, cutting operating costs and scaling back investment spending.

The company is also suspending management-level salary increases for next year and instituting a hiring freeze for open positions. American Express expects to save around $700 million from the staffing and compensation reductions. ...