American Express announced that it will eliminate 5,400 jobs this year and take a $400 million restructuring charge in the fourth quarter.
American Express said it plans to reduce its workforce, currently at 63,500, by 4 to 6 percent by the end of 2013 as it shifts more of its customer service online.
Along with a number of other costs, the charges will halve the company's fourth-quarter net income to 56 cents a share.
Excluding these items, American Express earned $1.2 billion, or $1.09 a share, on revenue of $8.1 billion. For the year ago period, net income was $1.2 billion, or $1.01 per share.
Analysts had expected $1.06 a share on revenue $8.12 billion, according to Thomson Reuters.