5,000 people will lose their jobs. The bank says they're being replaced by artificial intelligence.

American Express announced on Thursday that it will eliminate approximately 3,500 positions, representing five percent of its global workforce, to reduce costs and prepare for the broader integration of artificial intelligence. The decision was made despite the financial services company reporting growth in both revenue and profits during the third quarter. This move follows a similar announcement by the British bank Barclays just one day earlier, which stated it would cut roughly 5,000 jobs, also equating to five percent of its staff, citing efficiency gains driven by new technologies. Stephen Squeri, the chief executive officer of American Express, disclosed the layoff plan during the presentation of the company’s third-quarter financial results. At the end of last year, the firm employed nearly 77,000 people worldwide. The restructuring involves eliminating about one job in twenty. American Express has allocated $336 million to execute this reorganization, a sum that covers expenses related to headcount reductions and operational changes. Christophe Le Caillec, the company’s finance director, explained to CNBC television that the goal is to simplify workflows and automate tasks using artificial intelligence. He stated that the company does not wish to automate processes that are not optimally organized. Consequently, American Express is reducing management layers and altering how teams are structured to utilize AI more effectively over the coming months and years. The strategy involves decreasing the number of personnel and supervisors involved in specific business processes, with the intent of delegating certain duties to computer systems in the future. The company did not specify which particular roles would be eliminated. During the earnings call, Squeri indicated that American Express intends to use artificial intelligence to offer customers services and benefits tailored to their habits and needs. He discussed the rising popularity of AI assistants, software programs capable of independently performing specific tasks on behalf of users. These tools can search for deals, compare prices, or attempt to complete purchases. However, Squeri warned that the company will not permit unrestricted access to its internal systems. External AI tools will only be able to connect to American Express systems through specifically approved and secure methods. This measure aims to prevent scenarios where AI programs might access accounts or execute transactions without adequate oversight and protection. Barclays, the fifth-largest bank in Europe, announced on Thursday that it will cut approximately 5,000 jobs by the end of 2026. The bank employs about 93,000 people globally. A spokesperson told AFP that roughly 60 percent of these cuts concern support functions, including a reduction in the number of developers, as AI makes teams more productive. The bank described the initiative as organizational simplification and efficiency gains driven by AI-enabled technological changes. Barclays estimated that these measures would yield long-term savings exceeding 1.1 billion pounds, or approximately 1.3 billion euros. The layoffs at Barclays are occurring despite strong financial performance. In the third quarter, the bank generated a pre-tax profit of 2.3 billion pounds, roughly 2.7 billion euros, marking a 12 percent increase compared to the same period last year. Group revenues reached 7.4 billion pounds, or about 8.8 billion euros. Although the bank expressed disappointment because it had anticipated higher profits, the leadership believes that automation and simpler work organization will allow them to perform the same work with fewer employees, particularly in support roles such as programmers. Approximately 1,000 positions were already eliminated in the first half of the year, with the remaining cuts scheduled for completion before the end of 2026. Separately, U.S. e-commerce platform eBay confirmed it will cut another 1,000 jobs, amounting to about nine percent of its workforce. CEO Jamie Iannone informed employees via memo, and a spokesperson verified the figures to AFP. This follows an initial round of layoffs in February of this year, which reduced the staff by six percent. At the end of last year, eBay employed 12,300 people. Unlike other online marketplaces facing difficulties, eBay has seen its stock value rise by 40 percent this year, outperforming the average of the U.S. market. The company expects to report a profit of around $600 million on revenues of $3 billion for the current quarter. eBay has found a niche in selling authenticated luxury items, collectibles, and refurbished goods, with growing traffic, revenue, and profit. Analysts noted that European banks and companies have invested billions in digitalization for years. With the expansion of artificial intelligence, this marks the first period where these investments are translating into a tangible reduction in employee requirements. Jobs involving repetitive administrative, operational, or analytical tasks are most exposed, as AI can quickly take over parts of the work or significantly boost individual productivity. The focus is shifting from whether AI will impact the labor market to which specific roles will feel the effects first. Both American Express and Barclays emphasized that their actions are part of a strategic shift toward leveraging technology for greater efficiency, even as they continue to generate substantial profits.