==============================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 5, 1994
AMERICAN EXPRESS COMPANY
----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
New York 1-7657 13-4922250
------------------------------- -------------- ------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification)
American Express Tower, World Financial Center
New York, New York 10285
----------------------------------------------- ---------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, (212) 640-2000
including area code --------------
-----------------------------------------------------------------
(Former name or former address, if changed since last report.)
============================================================================
<PAGE>
Item 5. Other Events
On October 5, 1994, American Express Company issued the following
press release:
NEW YORK, October 5, 1994 -- American Express Company today announced a
series of decisions that represent a continuation of a reengineering program
launched in 1992 to provide better customer value at significantly lower
costs. The decisions will change the processes and operating structure that
support the Company's U.S. charge card, corporate card and consumer lending
businesses. They will also set the stage for new products designed for
specific, more targeted customer segments.
The Company will:
- - Redesign core processes in the U.S. business units of its Travel Related
Services subsidiary that have the same basic design and technology
support, independent of product and geographic location. The processes
will support: Cardmember acquisition, service delivery, new product
development, customer relationship management, merchant processing,
technology, risk management and vendor management. Each of those
processes is currently conducted separately for each of the major product
and service areas.
- - Reconfigure its network of regional operating centers, closing three of
its facilities in Phoenix, AZ. In addition, Card operations will be
moved out of operating centers in Jacksonville and Miami Lakes, FL. Work
now conducted in those facilities will be consolidated into regional
operating centers in Ft. Lauderdale, FL; Greensboro, NC; and Phoenix.
Some of the work presently conducted in these facilities will be
reallocated among the centers or outsourced to other companies. Because
of the complexity of the initiatives and the need to maintain a high
level of customer service, the consolidation of operating centers will be
done in phases over the next two years.
-- The Western Regional Operating Center in Phoenix is scheduled to
close by the end of 1995.
-- The Western Regional Operating Center II and Arboleda, both in
Phoenix, are scheduled to close by mid-1996.
-- Card operations will be moved out of the Optima Regional Operating
Center in Jacksonville, FL by mid-year 1996.
-- Card operations will be moved out of the operating center in Miami
Lakes, FL and that facility will close by the second quarter of 1995.
-- The operating center in Salt Lake City, UT will continue to support
the Traveler's Cheque business, house new accounts and an employee
service center.
<PAGE>
- - Streamline staff support and headquarters functions throughout American
Express to eliminate duplicate efforts and reduce expenses. A key part
of this effort will be to reorganize staff groups so that they provide
services to all American Express units, regardless of subsidiary or
geographic location.
The decisions will result in significant staff reductions throughout the
Company over the next several years. Actual numbers cannot be determined
until the process redesign is completed. If, however, all of the center
closings, reallocation of work and reengineering were completed at once,
approximately 4,000 people would lose their jobs. Support staff
consolidations would eliminate approximately 2,000 additional jobs globally.
Because of the time required to implement these changes, normal employee
turnover, transfers and business growth, the actual number of people affected
will be lower.
Costs related to these initiatives are not expected to have a material impact
on current or future earnings. Future savings generated by these actions will
be reinvested in the business and help facilitate the achievement of the
Company's business and financial objectives.
"The ultimate goal of all of these efforts is to ensure that we can provide the
best products and services to our customers, do so at the lowest possible
costs, and enhance the American Express brand," said Harvey Golub, chairman
and chief executive officer, American Express. "These efforts will build a
stronger, more successful organization that will move us closer to achieving
our vision of becoming the world's most respected service brand."
Kenneth I. Chenault, president, Travel Related Services - U.S. said, "Over the
next few years we will be introducing many new products and taking steps to
reduce time-to-market while continually improving customer service. The
changes we are announcing today will help achieve significant improvements in
our margins in order to fund investments in our franchise that are necessary
for the future."
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
AMERICAN EXPRESS COMPANY
By: /s/ Stephen P. Norman
---------------------
Name: Stephen P. Norman
Title: Secretary
Dated: October 5, 1994
<PAGE>
