Amex to lay off 10% as it freezes salaries and hiring

American Express Co. plans to slash its work force by 10%, roughly 7,000 jobs, as part of a $1.8 billion cost-cutting plan. The financial services company is also instituting a salary freeze for management as well as hiring freeze.

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The company has been getting hit hard by reduced consumer spending in the U.S. and has faced some financing difficulties as the commercial paper market locked up in recent weeks. American Express was quick to tap the Federal Reserve's new commercial paper lending facility this week, although it declined to say how much it borrowed. - George White

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