AmEx plans sweeping overhaul to cut $1bn in costs
Credit card issuer American Express (AmEx) has unveiled plans for a restructure in an effort to cut $1bn in costs over the next two years.
As part of the overhaul, AmEx will streamline and consolidate some marketing activities to reduce costs and duplication of work. The company will set up a global marketing operations unit that will be headed by Mike McCormack. It will establish an enterprise digital group to centralise web, mobile and digital product management activities. The unit will be headed by Luke Gebb.
AmEx will also merge its world service and global credit administration operations into one unit led by Raymond Joabar.
The company also plans to axe jobs, though it has not yet disclosed the precise number of employees it wants to reduce.
In addition, the company has announced the appointment of the company’s global banking president Paul Fabara as the new chief risk officer, and the exit of its chief marketing officer John Hayes.
AmEx chairman and CEO Kenneth Chenault said: “This is a big task. It essentially means that we must transform the way the company works. We need to do some things better and some things differently – with a “one company” perspective instead of operating as a collection of individual businesses.
“Among other things, this means taking a company-wide look at functions and processes that now exist in multiple parts of the organization and identifying opportunities to consolidate them into centralized utilities that provide support across business lines.”