American Express splits consumer units

21 Jun, 2007

American Express Co, the credit card and travel services company, said on Wednesday it will split its operations into consumer and business units rather than by geography, and promoted several executives.
The fourth-largest US card company expects the changes, which take effect July 1, will leave management better able to add customers and offer more services at a time rising credit losses are cutting into profit. New York-based American Express has divided its operations into US card services, global card and commercial services, and global network and merchant services.
The changes "will help increase customer focus," Chenault said in a memo to employees. "We'll still be in payments, but I believe we'll view payments as an enabler of more value-added, relationship-based services to consumers and companies." No jobs are expected to be lost in the reorganisation, spokesman Mike O'Neill said.

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