American Express is planning further cost cutting after reporting a 58% drop in income for the first quarter of 2009.
The group, which announced 7,000 job cuts last October, saw income fall from $1 billion to $443 million in the first three months compared to the same period in 2008.
Its commercial division, which includes its business travel and corporate card business, saw income drop by 43% from $151 million to $86 million.
Executive vice president and chief financial officer Daniel Henry said: “I think that we recognise that the environment is going to continue to be difficult.
“We’re going to work very hard to execute against the reengineering that we put in place in the fourth quarter of last year so that we get the full benefit as we go through this year.
“But as I indicated we actually are going to have another round of reengineering, have additional actions including additional reductions in staff. So we do think there’s additional flexibility in our business model and we will utilise those levers.â€
By Bev Fearis
