Amex to cut India jobs, refuses to give numbersNovember 3rd, 2008 - 10:27 pm ICT by IANS
New Delhi, Nov 3 (IANS) US credit card and banking giant American Express Monday confirmed that the company would cut jobs in India but said it cannot give a specific number.“Approximately 7,000 jobs are being eliminated company-wide which translates into about 10 percent of the company’s worldwide workforce,” the company said in a press statement in response to queries from IANS.
“While we cannot give you a specific number for India market, we can tell you that we are not the main focus of the restructuring. The reductions will occur throughout the company and across business units, markets and staff groups, primarily focusing on management and other positions that do not interact directly with customers,” the statement said.
“While we cannot get into specifics around business units and departments, we can tell you that the reductions will occur across business units, markets and staff groups focusing on management and other positions that do not interact directly with customers,” the statement said.
Earlier, on Oct 30 the company had announced in New York that it would take company-wide reengineering initiatives to produce cost benefits of approximately $1.8 billion in 2009.
The reengineering plan includes: reducing staffing levels and compensation expenses, cutting operating costs and scaling back investment spending.
The company has taken on its books a restructuring charge of approximately $370 to $440 million pre-tax (approximately $240 to $290 million after-tax) in the fourth quarter, the company statement said.
The charge is primarily associated with severance and other costs related to the elimination of approximately 7,000 jobs or about 10 percent of the Company’s worldwide workforce.
The reductions will occur across business units, markets and staff groups primarily focusing on management and other positions that do not interact directly with customers.
The company is also suspending management level salary increases for 2009 and instituting a hiring freeze for open positions. The total benefit from these staffing and compensation-related decisions is expected to be approximately $700 million in 2009, the company statement said.