[ by Melanie Gretchen ]

American Express Co. says it will cut 5,400 jobs in 2013, or 8.5% of its 63,500 workforce.  The New York-based lender it seeks to cut costs and transform its operations following a 47% drop in 4th quarter earnings that includes after-tax charges of $594 million.

It's interesting to note that AmEx revenues rose 5% to $8.1 billion, slightly ahead of analysts' expectations.

Most of the cuts will likely come from the travel services business, in response to a shift in the way customers and businesses book travel reservations - i.e., they have increasingly been using digital technology for bookings.  Last quarter, travel commissions and fees declined 3.1% to $465 million from a year earlier, according to a 10/31/13 regulatory filing.

For further details, go to [Bloomberg, 1/11/13].