others, is bracing for an economic slowdown, a slowdown, which Robert Shapiro, director of sales at Massey Knakal Realty Services, recently called "the most tumultuous time in the economy since the Great Depression."

American Express revealed that the companywide "reengineering initiatives" are expected to produce cost benefits of approximately $1.8 billion in 2009. The reengineering plan includes not only reducing staffing levels and compensation expenses, but it includes cutting operating costs and scaling back investment spending as well. According to a prepared statement, elements of the program include: a restructuring charge of approximately $370 to $440 million pre-tax--approximately $240 to $290 million after-tax--in the fourth quarter. That charge is primarily associated with severance and other costs related to the job reduction of the company's worldwide workforce.

An AMEX spokesman tells GlobeSt.com that the staff cuts will not have a specific concentration in the firm's local office. However, he did say that it does affect all parts of the company, "New York City included." The reductions will occur across business units, markets and staff groups primarily focusing on management and other positions that do not interact directly with customers. The spokesman could not disclose local numbers or provide further information. Office leasing contacts for the firm's headquarter property—from Brookfield Properties—were not able to answer GlobeSt.com queries by deadline.

American Express is also suspending management level salary increases for 2009 and instituting a hiring freeze for open positions. The total benefit from these staffing and compensation-related decisions is expected to be approximately $700 million in 2009. Reducing operating costs--by cutting expenses for consulting and other professional services, travel and entertainment, and general overhead--are expected to realize benefits of approximately $125 million next year.