My, What A Big Ax At Amex

IT WAS GOOD NEWS/BAD NEWS at American Express. Buried within its strong earnings report on Jan. 27, in which operating income soared 13%, to $433 million on $4.3 billion in revenues, AmEx announced it will lay off 3,300 employees, about two-thirds of whom work in the overseas travel-related services division. Chairman Harvey Golub says the move is necessary to pave the way for both new products and jobs. But some on the Street were surprised by the magnitude of the cuts--about 5% of the workforce--and question whether AmEx will be able to maintain its traditionally high level of international customer service.