AI restructuring: American Express plans to cut 5% of its global workforce, roughly 3,850 jobs, as it restructures operations to improve efficiency and prepare for greater artificial intelligence adoption. The company will take a $336 million restructuring charge, joining a broader financial services trend that includes Barclays’ planned 5,000 job cuts. Amex on Friday reported a 9% increase in revenue for the third quarter to $20.06 billion and raised its full-year earnings outlook. CNBC has the full story.
Freight shift: U.S. railroads Union Pacific, Norfolk Southern and CSX are reporting higher third-quarter revenue and profits as rising diesel prices and tighter trucking capacity pushed more shippers toward rail, which is three to four times more fuel-efficient than highway trucking. The companies recorded volume increases of 3% to 6%, while intermodal shipments rose 12.6% year over year, though higher fuel costs weighed on profit margins. Union Pacific and Norfolk Southern are also pursuing a $71.5 billion merger targeted for mid-2027, but face regulatory and industry opposition over potential higher shipping costs and reduced competition. The Wall Street Journal has the full story.
Feeling the strain: U.S. consumer sentiment fell to a five-month low of 48 in October as persistent inflation, rising interest rates and a sluggish job market strained household budgets. Consumers expect prices to rise 4.7% over the next year, the highest since May, while nearly 70% anticipate higher interest rates in the coming year. Buying conditions for durable goods hit a record low, reflecting growing affordability concerns even as consumer expectations improved slightly. Bloomberg has the full story.
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