American Express (AMEX) to cut 4000 jobs

AMEX will trim 4,000 jobs, or about 6% of its workforce as part of a cost-savings plan. Under the plan, AmEx hopes to save $800 million during the remainder of 2009. About $175 million of the savings are to come from the job cuts, which are expected to cost $180 million to $250 million in a second-quarter severance charge. Reduced spending on marketing and business development is expected to save $500 million, and cuts to consulting, travel, and general overhead are expected to save $125 million.