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Article: Rivals spurred American Express revamping. (Travel Related Services to be streamlined)
- Article from:
- American Banker
- Article date:
- October 12, 1994
- Author:
CopyrightCOPYRIGHT 1994 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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As news of American Express' plans to "reengineer" its card business reached the public last week, the New York-based company's 71,000 employees received a six-page letter from their top executives.
Harvey Golub, chairman and chief executive of American Express Co., and Kenneth I. Chenault, president of Travel Related Services in the United States, laid out straightforwardly why American Express must eliminate up to 6,000 jobs.
Their letter stated:
"We concluded that TRS' [Travel Related Services'] product-oriented processes, as well as its marketing and operational structure, have three important deficiencies:They cost us significantly more than those of our ...