American Express (NYSE: AXP) plans to transfer work currently handled at a Madrid service center to regional facilities in Buenos Aires and the UK as part of the company's decision to consolidate locations within its global servicing network.
The credit card company said that it will recognize fourth quarter restructuring and other reengineering charges of US$113mn, or US$74mn after tax, primarily reflecting to severance-related payments related to the restructuring.
Consolidations and reengineering initiatives reflected in the charge are expected to deliver annualized savings of some US$70mn, starting next year, American Express said.
The restructuring will affect 3,500 positions, including the elimination of 550 jobs. The company said it expects to finish the process by the end of the year.