American Express to cut 550 jobs in consolidation

NEW YORK: American Express plans to close a service center in Greensboro, North Carolina, and eliminate 550 jobs.

The New York-based credit card company said Wednesday that work now handled in Greensboro will be transferred to other locations in the U.S. A broader consolidation plan also will transfer work from a center in Madrid, Spain, to sites in the United Kingdom and Argentina.

American Express says the changes will result in a net reduction of 550 jobs. Because the changes involve relocating work to different sites, some 3,500 existing positions would be affected.

The company says the moves reflect a decline in service volume as more transactions are completed online, and on mobile devices.

The restructuring will result in charges of $113 million. American Express now expects to report net income of $1.1 billion, or 88 cents a share, for the fourth quarter. Analysts were expecting 92 cents a share.