The credit card company American express, the company said it will cut 5400 jobs, or 8.5% of the employees, as restructuring its business, and pay legal fees.
Steps will cost the company in the fourth quarter of the cost of about $6 million after tax, this will reduce half of net income.
The cost of nearly $300 million to pay for restructuring, mainly in the ministry of tourism, in order to save money and adapt to the fact that more and more customers online booking travel and their mobile phone, rather than with the travel agency.
The other half of the cost is higher cost from the customer for the reward with card consumption, as well as the $1.53 million payment, to compensate for the customer received or shorter than the benefits.
American express is downsizing began to economic recession. But CEO Kenneth chenault, stock analysts on Thursday, the card consumption growth.
"This is not by we think macro environment," he said.
The company said the layoffs will take place in this year, even if hired some new employees, invest in more online customer service. Existing staff of 63500 people by the end of 2013, about 4% to 6%.
, headquartered in New York, said American express downsizing ratio will be dispersed in the United States between the international market.
Even if the restructuring, said chenault, operating costs increase annually by up to 3%, the company spend more money for the service, international expansion and new products, such as prepaid debit card.
At the same time, the company said it was going to pay $153 million customers, because it mistake the cost of collection, and included in the people and their rewards card cost.
Many of the reimbursement from previously disclosed agreed to make consumer financial protection agency in October, the company to achieve. Other problems company as its back to the record has seven years, financial director Dan Henry told analysts.
Some mistakes happen, because the company has been involved in the application for complicated formula. For example, member CARDS in the market to buy vegetables, the company not a supermarket as error for half of the integral, Henry said.
Cardholder because of the money will be direct notice in the coming months, the company said.
"We will continue to work closely with regulators, and strengthen our control," from the company, chenault said in a statement.
The company also said that, previously announced review shows that it is undervalued redemption the model forecast how much, its members pay will be redeemed. The company now expects, customer redemption 94% of its reward, not 93%, the difference is forcing it to reserve an additional 342 million dollars to pay the cost.
Change means that the company will show about $40 million annually, overhead, Henry said.
Cost is worthy, chenault says, the use of incentive plan, because customers tend to use their CARDS, their consumption, is not likely to switch to a different credit card or sign the bill card. High consumption into higher income for the company from the card business.
If not to collect fees, the company said it will report the fourth quarter adjusted net income was $1.2 billion, or $a share,. On the contrary, it says for 637 million yuan, or 56 cents per share.
Analysts had expected an average, the company earn $1.06 per share, regardless of the special project, revenue of $8.12 billion, according to the townsend Reuters I/B/E/S.
Tax, fee, including $287 million restructuring, $212 million of higher redemption returns the dollar and us $950000 customer error.
The company said, after spending their members, in the fourth quarter single-digit growth, a third consecutive quarter grew by 8%, and a quarter of double-digit growth. About two point of growth is due to the change of exchange rate.
The total income deducted interest costs rose 5%, to $8.1 billion a quarter.
American express quarterly report detailed information, January 17,, the original plan release the results.
The company's share price fell slightly, after the deal announced and market closing $60.50. They last Thursday on the New York stock exchange to close at $60.79.



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