American Express 2012 Annual Report Download - page 10

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We expect that these changes will result in a net reduction of 5,400 jobs. It’s
never easy to make a decision that involves people losing their jobs. We will be
parting with highly valued and respected colleagues who have made important
contributions to our success. Yet, as di cult as this is on a personal level, we
believe it’s the right thing to do for the business. In addition, making these
changes while we are operating from a position of strength is the best time to
do it.
Having a lean and fl exible operating structure is a critical piece of our growth
strategy. This restructuring program is part of that blueprint. It will reduce
our expense base, increase our agility, and make us more e cient in using our
resources to drive growth–even in a slow-growth economy. Ultimately, we believe
it will help us continue to adapt and lead in a rapidly changing environment.
ADVANTAGES IN A DIGITAL ECONOMY
Our industry is being redefined by many forces, including the continued
revolution in online and mobile technologies, which is transforming commerce
and society. These factors are changing consumer preferences with an emphasis
on greater personalization, immediacy and convenience. This is opening up
new opportunities for growth that will play to our strengths. It also brings
increased competition from traditional rivals and new entrants, all vying for
the same customers.
We believe American Express has unique assets to succeed in an increasingly
digital and mobile economy. As we’ve charted our digital transformation in
recent years, we’ve followed a few principles: meet customers in the environment
they prefer, connect with them in authentic ways, use our network to create
valuable user experiences while building demand for merchants, and constantly
refi ne our capabilities. We’re aiming not only to add value at the moment of
purchase, but to do it at multiple points in the commerce chain.
One example is the way we used our digital assets and relationships to create
Small Business Saturday, a national movement to support small businesses
across America. In 2012, the third annual Small Business Saturday broke
records. About 67 percent of American consumers were aware of Small Business
Saturday, and they spent an estimated $5.5 billion at independent merchants on
that day alone.
To Our Shareholders
2012 Financial
Results
Marketplace Moves
Shareholder Returns
Foundational
Changes
Advantages in a
Digital Economy
A Broad Footprint
Customer Focus
Board of Directors
Change and Tradition
AMERICAN EXPRESS COMPANY
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