AmEx quarterly profit plunges 76% on $1.7 billion reserve build

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FILE PHOTO: Pedestrians walk past an American Express sign in New York U.S., July 16, 2018. REUTERS/Lucas Jackson

(Reuters) – Credit card issuer American Express Co (AXP.N) posted a 76% drop in quarterly profit on Friday, as it set aside $1.7 billion to brace itself against potential non-payments due to a wave of coronavirus-led layoffs.

The pandemic has hammered the global economy, hurting consumers’ ability to make payments on their credit cards. The lockdowns around the world are also hitting transaction volume as people stay at home.

“In light of the current environment, we are aggressively reducing costs

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AmEx to avoid job cuts as it rides out coronavirus storm

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(Reuters) – American Express Co (AXP.N) will avoid job cuts in 2020 as the credit card issuer “rides out the storm” brought on by the coronavirus pandemic, Chief Executive Officer Steve Squeri said in a video message to employees on LinkedIn.

FILE PHOTO: American Express and American Express corporate cards are pictured in Encinitas, California October 17, 2011. REUTERS/Mike Blake/File Photo

As the virus outbreak hits business volumes, AmEx has moved from a largely brick-and-mortar operation to having more than 60,000 employees equipped to work from home and two-thirds of its customer-care professionals working remotely, Squeri said.

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