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News Summary: American Express to cut 5,400 jobs

The Associated Press

JOB CUTS: American Express Co. plans to slash about 5,400 jobs, mainly in its travel business, this year. The job cuts will be partly offset by new hires. The company has 63,500 employees.

DIGITAL REVOLUTION: The restructuring is part of a business overhaul aimed at catering to customers who are increasingly shifting to online portals and mobile devices to book travel plans, shop and pay their bills.

CHARGES: AmEx will book an after-tax charge of $287 million due to the restructuring. That, combined with other charges, will reduce its fourth-quarter net income by 46 percent from a year earlier.