American Express said it would cut almost 10 per cent of its workforce, in the latest cost-cutting measure at financial services companies forced to scale back as the US economy slows.

The 7,000 job cuts at American Express are part of a restructuring effort the credit card company hopes will generate $1.8bn of savings next year. The company said on Thursday it would also suspend management salary increases, put a freeze on new hires, slash investment spending and cut expenses for consulting, travel and entertainment.