AMEX has announced significant job cuts and restructuring measures.

American Express (AMEX) has announced job cuts of around 10% – 7,000 – of its global workforce and restructuring measures in an effort to produce cost benefits of US$1.8 billion (over £1.1bn) next year.

The restructuring measures include the suspension of management-level salaries, a reduction in operating costs of $125 million and downsizing technology and marketing investments.

The global payments and travel company cited the current economic climate for the cost-saving measures. Kenneth I. Chenault, Chairman and Chief Executive Officer of American Express, said: “The re-engineering programme we announced today will help us to manage through one of the most challenging economic environments we’ve seen in many decades.

“It will also put us in position to ramp-up investment spending as economic conditions improve so that we can take advantage of the substantial opportunities that will be available to us over the medium to long term.”

AMEX still intends to make considerable investment into growth opportunities and will continue with its intended pricing initiatives in an effort to generate income during 2009.