Global payments and travel company American Express on Thursday (Oct. 30, 2008) said it will cut 7,000 jobs, which is about 10% of its workforce worldwide. This move is expected to result in cost savings to the tune of $1.8 billion in 2009.

American Express is the latest entity to join a flurry of US companies including financial services giant Citigroup, Goldman Sachs and beverages major Pepsico which have already elimination of jobs.

With that AmEx would be suspending management level salary hikes for next year apart from freezing the hiring for open positions. The plans aimed at cost savings of 1.8 billion dollars includes “reducing staffing levels and compensation expenses, cutting operating costs and scaling back investment spending,” American Express said in a statement.

News Source : Times Of India