American Express has announced plans to eliminate approximately 3,500 jobs, or 5% of its global workforce, even as the financial services company reported stronger third-quarter profits.

The New York-based company said its third-quarter profit rose 28% to $3.71 billion, supported by continued spending among affluent customers. Adjusted earnings reached $4.68 per share, exceeding Wall Street expectations, according to the Associated Press.

Chief Executive Stephen Squeri said the workforce reductions are intended to improve operational efficiency rather than respond to weakening business conditions. The planned cuts represent one of the company’s most significant workforce reductions in roughly a decade.

American Express is also increasing revenue from premium card products. Its Platinum Card annual fee rose from $695 to $895, alongside additional customer benefits. The company reported that nearly all customers transitioned to the new pricing had retained their cards.

The company is balancing cost reductions with investment in premium customer services as competition intensifies across the credit-card and payments industry.

American Express also raised the lower end of its full-year adjusted earnings forecast to $17.60 per share, while maintaining its upper estimate at $17.90.

The announcement highlights a broader corporate strategy: maintaining profitability and investing in growth while restructuring operations even when customer spending remains resilient.