American Express will slash thousands of jobs, even as the company reported that fourth quarter earnings were dented by foreign currency movements.
Bloomberg reported that the job cuts will total 4,000 as part of a restructuring, and a spokesperson said they will cut across the company.
After the bell Wednesday, American Express reported that fourth quarter profits rose 11% to $US1.45 billion, or $US1.39 a share, versus an expected $US1.38 per share. Revenues rose to $US9.1 billion from $US8.5 billion, a 7% increase, or 9% when adjusted for foreign currency movements.
This earnings season, multinational companies that earn revenues outside the US are revealing the impact of the dollar’s surge in 2014.
The company’s shares fell 1.93% in after-hours trading.
“We’ve made very good progress against the backdrop of an uneven global economy and the negative impact of a strengthening U.S. dollar,” CEO Kenneth Chenault said in the earnings statement.
“Fourth-quarter results were negatively affected by the impact of foreign currency translations on international operations,” the statement further said.
eBay also announced that it will layoff 2,400 people, or 7% of its workforce including PayPal, when it announced fourth quarter earnings Wednesday. It said the cuts will simplify its workforce.