AMEX to Cut 1B in Costs.

[elim]

I hope they don't have a nerf-a-thon.

American Express pledged to overhaul the company after the card issuer posted a 38% decline in fourth-quarter earnings and provided a bleak outlook for next year.

As part of the changes, AmEx said it would cut $1 billion in costs by the end of 2017, acknowledging that efforts to propel revenue growth weren’t paying off.

“The performance we are discussing is not what we or you are accustomed to seeing from American Express,” Mr. xxxxx told analysts and investors in a conference call on Thursday after AmEx reported results after the market closed.

He said the company “is taking significant actions to change the trajectory of our business going forward.”

[Anonymous]

Their stock has  tanked as a result of poor earnings:

http://money.cnn.com/2016/01/22/investing/american-express-earnings-warren-buffett/

[Appleman]

Whar are your thoughts on how this will affect the current card holders? Those who run a lot of business throught the card are making them money from fees and those who carry a balance are providing a steady stream of interest income. 

Do you anticipate they will start dropping credit lines to decrease exposure?