NEW YORK --
American Express said it expects to record a fourth-quarter pretax
charge of between $100 million and $120 million as well as cut up
to 2,000 jobs "in connection with various restructuring activities"
primarily within its business travel unit and related to the sale
of some overseas banking operations.
The charge is not expected
to have a material impact on the quarter's net income as it also
expect to record a gain in the fourth quarter in connection with
the previously announced sale of the leasing product line in its
small-business financing unit, American Express said in its filing
with the Securities and Exchange Commission. The restructuring
charge includes roughly $80 million to $90 million in employee
severance packages and $20 million to $30 million in
early-termination of real estate property leases.
According to a
statement by American Express, "the charge reflects expenses in
connection with several initiatives relating principally to the
restructuring of the Company's Business Travel operations, the
decision to sell certain operations of American Express Bank (AEB)
... and the relocation of certain functions in the Company's
finance operations." Amex said it expects the sale of the AEB
operations to eliminate about 400 positions.