American Express will eliminate approximately 5% of its global workforce, a move CEO Stephen Squeri described as a necessary step to streamline operations and reduce decision-making layers. The announcement, made during the company's third-quarter earnings call, comes alongside a restructuring charge of $336 million aimed at accelerating internal processes and boosting investment in marketing and technology.
The workforce reduction follows a quarter in which American Express delivered mixed results. Earnings per diluted share rose to $4.68 from $4.14 a year earlier, surpassing the FactSet consensus of $4.48. However, revenue of $20.06 billion fell short of the expected $20.12 billion, though it remained higher than the $18.43 billion reported in the same period last year. Looking ahead, the company raised its 2026 earnings per share guidance to a range of $18.30 to $18.60, up from the previous projection of $17.30 to $17.90.
Market reaction to the news was immediate, with American Express shares dropping 3.8% around midday Friday. The stock decline occurred despite the earnings beat, suggesting investors weighed the cost of the restructuring and the missed revenue target heavily against the improved outlook.
In other corporate news, Bloom Energy shares fell 12% following a strong third-quarter report. The company posted adjusted earnings of $0.94 per diluted share, up from $0.15 in the prior year and well above the consensus estimate of $0.69. Revenue also outperformed expectations, climbing to $1.24 billion from $519 million a year earlier, compared to the market estimate of $1.07 billion.
Space Exploration Technologies, commonly known as SpaceX, revealed in a regulatory filing that it requires CEO Elon Musk's approval for a potential merger with Tesla. Separately, Bloomberg reported that SpaceX is in discussions with at least one major cellular infrastructure company to secure at least 80,000 cell sites across the United States. Following these reports, SpaceX shares rose 1.6%, while Tesla shares edged up 0.1%.
Apple provided limited quantities of its foldable iPhone Duo for walk-in customers during its Friday launch, according to a company statement cited by Reuters. Initial online orders sold out within minutes, delaying some deliveries until January. Availability in stores will vary by market, with India, China, Japan, and South Korea restricted to online orders only. Apple shares eased 0.1% in trading.
Broader market trends on Friday saw the Nasdaq Composite rise while the Dow Jones Industrial Average and S&P 500 Index fell in late-morning trading. Oil prices gained during this period on heightened tensions in the Middle East.