American Express Stock Plummets Amid AI Disruption Fears Triggered by Block’s Layoffs
American Express (AXP) shares tumbled nearly 8% on Friday as Block's announcement of cutting 40% of its workforce—over 4,000 employees—sent shockwaves through the financial sector. Block CEO Jack Dorsey attributed the layoffs to AI-driven efficiency gains, warning that smaller teams equipped with advanced tools could achieve more. The market reaction was swift and severe, with AXP's implied volatility spiking and put options surging to a 2.6 put-to-call ratio.
Investors are grappling with a new reality where even fintech pioneers like Block aren't immune to automation's disruptive force. The selloff reflects broader concerns about traditional financial institutions' vulnerability to technological upheaval. AXP's year-to-date decline now stands at 11.39%, with traders positioning for further downside.
