American Express to slash 4,000 jobs

American Express Co, the credit card and travel services company, yesterday said it plans to eliminate 4,000 jobs, or 6 percent of its workforce, as the weak economy causes higher customer defaults.

The cuts are part of the New York-based company's plan to save $800 million over the rest of 2009. They are in addition to 7,000 job cuts and an expected $1.8 billion savings from a restructuring announced in October.

Like many rivals, American Express has been hurt by rising delinquencies among cardholders, with the US unemployment rate having risen to its highest level since 1983.