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Showing posts with label Job Lay-off. Show all posts
Showing posts with label Job Lay-off. Show all posts

Friday, March 26, 2010

12 Indirect Job Interview Questions & What They Really Reveal

The interview is a classic point of stress for most job seekers, and with good cause. Many firms like asking indirect questions that make it hard to judge what information they're really fishing looking for. Of course, interviewers don't want anyone to know the motivation behind their method of questioning, or else potential job candidates could easily game the system. For this reason, most firms ask slightly different questions and have their own method of interviewing. Today, we explore twelve common indirect questions that employers often ask and the motivation behind them.

“How long have you been looking for a new job?”

A big sign that something is amiss with a potential hire in a normal economic climate is how long he or she has been searching for a job. What potential employers really need to determine is whether there is something wrong with the candidate that other potential employers have picked up on already. Of course, asking the candidate such a thing will not yield an honest answer, so instead, employers ask how long the candidate has been looking for a job. They can interpret the candidate’s response and try to gauge how likely it is that other interviewers have picked up on some glaring disqualifier that they have not yet discovered.

“How did you prepare for this interview?”

The more passionate an employee is about a particular organization, the more likely it is that he or she will strive to exceed expectations if they are hired. A good candidate will have read up on the firm, researched the products and services they offer, read a bit about the executives who work there, etc. A bad candidate takes the shotgun at the wall approach. This latter candidate takes walks into any old office building, hoping to get through the interview on personality alone. One way companies separate the two is to ask an indirect question regarding how they prepared for the interview. The candidate who mentions reading up on the organization and demonstrates a working knowledge of the firm’s strengths, services and management team is enthusiastic about working for that company and will likely strive to be the best they can be if selected.

"What are your salary requirements for this position?”

No matter how stellar a candidate might be, budgetary capacity often limits who companies can afford to hire. The firm might only have room for a $60,000 annual salary for the position and anyone requiring more than that is out of luck. Beyond a certain point, more qualifications and experience cannot equal a higher salary. This is why it is important to the company to determine if they can afford to hire new applicants. They might also try to determine if they can the right person for less than is budgeted for that position, because money saved equals a bigger bottom line. Of course, no interviewer will ever tell the candidate “we can afford to pay you up to $60,000, but we’d like to hear you say you’ll do it for less.” Instead, companies will frequently ask the person what their salary requirements are. The number they name will be important when they review the interview results of multiple applicants and make the final hiring decision.

“What kinds of people do you have difficulties working with?”

In today’s expanding global economy, it is almost unavoidable that any new hire will be working in some capacity with people from a wide range of ethnic, cultural and religious backgrounds. The last thing companies want to find out is that their new employee is a bigot and treats people differently because of their background. Not only will this cause problems in-house, it can also destroy the firm’s credibility and reputation, depending on how high-up a position he or she is assuming. However, it isn’t politically correct or at all professional to ask someone if they have a problem with specific groups of people, and even if an interviewer did, the candidate would likely deny it. Instead, many firms try an indirect way of asking the same thing, for example: “What kinds of people do you have difficulties working with?” By asking this question, the interviewer is subconsciously communicating that the candidate must have a problem working with some kinds of people. This method can be very effective in subtly revealing inner prejudices the potential hire might possess. In contrast, a good candidate will likely name some neutral group of people, like “dishonest employees,” or “perpetual slackers.”

"When have you been most satisfied in your career?"

Much like individual people, every company has its own “personality,” per se. This means that every new working environment has its own perks and bottlenecks, its own energy, its own level of employee-employee interaction, etc. Certain companies offer their employees more creative leeway while others demand strict adherence to guidelines. Every one of these factors (and many more) will directly effect a new hire’s motivation. Various people thrive under many different circumstances, and the job of the interviewer is to try to select the person whose personality best fits their firm’s unique environment. The problem is that people in interviews like to smile and nod along whenever the interviewer starts talking at length about the perks of their working environment, making it almost impossible to read what the candidate is really thinking. Instead, many companies have taken to asking something like, “When have you been most satisfied in your career?” This question will get the potential hire talking about the elements of their last few positions and will likely highlight aspects of those jobs that they felt happiest working under. From this, firms can determine if the person would fit in well with their atmosphere.

“What is your greatest weakness?”

Perhaps one of the most important tasks of the interviewer is to find a person with a level head on their shoulders. No company wants the narcissistic, fresh-out-of-grad-school candidate who thinks that they’re an infallible compendium of industry knowledge any firm would be lucky to acquire. These kinds of people hurt companies far more often than they help them because they refuse to acknowledge their weaknesses or consider the idea that they might need further training in certain areas. Rather, companies strive to find confident and qualified employees who can be honest with themselves about their shortcomings. These employees are likely to be flexible, honest and are less likely to try and pass blame around the cubicles when they make a mistake. In order to get a grasp on how realistic a candidate is, employers like to ask people about what they feel their biggest weakness is. This question will demonstrate whether or not a candidate can be honest in accepting that which they need to work on. (In contrast, a haughty candidate might spin off the tired response of “My biggest flaw is that I work too much.”)

“Where do you see yourself five years from now?”

A big problem in the corporate world is employees using firms as rungs up the corporate latter. Especially in today’s economy, the last thing a company wants is to allocate salary, benefits and human capital into acquiring a new manager only to have them jump ship to a competitor a year or two later. Sometimes this isn’t even the employees fault. One cannot reasonably expect a person to stunt their own professional life for the sake of a few headaches. Nonetheless, companies will try and gauge the likelihood of that happening by asking an indirect question such as “Where do you see yourself five years from now?” Responses to this question can be good indicators of how stable and loyal the potential employee is likely to be. A response like “I want to lead a large team at a marketing firm somewhere” is indicative of a mercenary attitude to the corporate world. In contrast, someone who says something like “At the moment I plan on growing my roots here in this company and rising from within to be the best marketer I can for XYZ Firm” demonstrates far more loyalty.

“What are some of your hobbies?”

Employers must be careful not to cross the line into asking too specific questions about a person’s personal life. Professionally speaking, your personal life needn’t impact your working life. However, in reality we all know that it does. For this reason, employers often look for indicators of stability and healthy hobbies in a person’s home life. The idea is that a person with a healthy and enjoyable life outside the office is likely to carry some of that positive energy into work with them. Workaholics and, at the other end of the spectrum, party animals, are not likely to be very friendly, emotionally stable people. Without probing too far, some interviewers will ask questions such as “What are some of your hobbies.” Answers to this question can help reveal a little bit about the potential hire’s lifestyle and serve as good indicators of roughly how they will carry themselves day to day.

“What were you hoping we'd ask today, but didn't?”

No interviewer can possibly ask all the right questions to highlight every one of the candidate’s strengths and accomplishments. At the same time, candidates are often somewhat nervous on the other side of the desk and might not freely offer up information pertaining to aspects of their personal or professional life that they are not asked for. Nonetheless, this information may positively or negatively sway the interviewer’s opinion of the candidate and it is thus necessary to prompt the potential hire to speak about it. Therefore, many firms now ask the open-ended question, “What were you hoping we’d ask you today, but didn’t?” This question gives the candidate a chance to touch on anything he feels is important to the interview and the employer a chance to hear the candidate speak on his own behalf.

“What do you think of your old boss?”

No employer wants to be maligned to other companies or to the public. Many ex- employees hold very sour opinions of their former bosses. Justified or not, this is not the kind of thing companies want people spreading around. Especially if it appears that a candidate was fired from their last position, an employer might ask about their opinion of their old boss. Of course, very few candidates will go on a tirade about the injustices they suffered at their old job during the interview, but even subtle hints of distain can be picked up on by the interviewer. This question gives the firm an indicator of how they may be spoke of to other firms this person interviews at in the future, should they need to fire him.

"If you had enough money to retire right now, would you?"

Many companies survive not on great ideas alone, but by the tireless work ethic and dedication of their teams. It is therefore of great importance for a firm to find people who are passionate about their work and who have a drive to get the job done regardless of reward. Of course, money is extremely important in our society, but the last thing a firm wants is a bump on a log who just wants to do the bare minimum and suck up his salary until he can retire. Questions such as, "If you had enough money to retire right now, would you?" reveal a candidate's level of passion about their field. Someone who quickly shouts "Yes of course!" without much thought is seen as being in it primarily for money. These are not the kinds of people most firms want to see in their inner circle.

If you were hiring a person for this job, what would you look for?

Questions about another person can only reveal so much about about them. Something companies really want to know is what the candidate thinks are the qualities of a good employee for that position. The idea is that if the candidate has a misconstrued concept of the roles he or she will be expected to play at that firm, they might not be the right person for the job. It is much easier to hire a person with notions of the job that are congruent with company expectations than to try to change a candidates entire idea of what's important in that position. To determine this, interviewers will often ask the question "If you were hiring a person for this job, what would you look for?" This allows the candidate to give his concept of what a good manager is. His or her answer is a great indicator of how he or she will behave if hired.

Thursday, October 29, 2009

Salary Growth Across the Country

http://www.kiplinger.com

With the unemployment rate in the United States reaching new heights each month, many are forced to contemplate relocating to reduce their costs of living. Similarly, there is a greater focus nationwide on the patterns in salary growth. While many areas of the country are experiencing zero or negative growth, there are still states, many of which are clustered on the East cost, in which salaries are actually on the rise. Additionally, there are numerous metropolitan areas in which salaries have grown at a surprisingly healthy rate. The graphic below showcases changes in salary across the country from the 4th quarter in 2008 to the 1st quarter in 2009, and spotlights those individual metropolitan areas with the greatest salary growth.

Before moving to Hawaii, however, you might want to review our guide to tax friendly places to retire.

Please click on the image below to enlarge.

Student Debt vs. Average Income



Click to ENLARGE....

Thursday, August 20, 2009

The Best And Worst Cities To Look For A Job

by Erick Schonfeld

The unemployment rate in the U.S. was still 9.4 percent in July, but some cities are better than others to look for a job. Of the top 50 metro areas, Washington, D.C., is the easiest for unemployed workers to find a job, while Detroit is the hardest, according to a new Job Market Competition index put together by job search engine Indeed.

The index ranks cities based on how many unemployed people there are compared to job listings. For every one unemployed person in Washington, D.C., for example, there are six job postings. Whereas in Detroit, there is only one job posting for every 18 unemployed people. The higher the ratio of job postings to unemployed, the more chances there are of landing a job.

The top ten cities in the index for finding jobs (and their corresponding ratios of job postings to unemployed) are:

  1. Washington, DC (6:1)
  2. Jacksonville, FL (3:1)
  3. Baltimore, MD (1:1)
  4. Salt Lake City, UT (1:2)
  5. New York, NY (1:2)
  6. San Jose, CA (1:2)
  7. Hartford, CT (1:2)
  8. Oklahoma City, OK (1:3)
  9. Austin, TX (1:3)
  10. Boston, MA (1:3)

The worst ten cities for job searches are:

    41. Buffalo, NY (1:6)
    42. Orlando, FL (1:6)
    43. Sacramento, CA (1:6)
    44. Rochester, NY (1:6)
    45. Chicago, IL (1:7)
    46. Portland, OR (1:7)
    47. Los Angeles, CA (1:8)
    48. Riverside, CA (1:9)
    49. Miami, FL (1:10)
    50. Detroit, MI (1:18)

Thursday, April 2, 2009

Want to keep your job? Be happy.

john kehe - staff

Study shows that a bright disposition helps workers navigate darker times.

Does the recession with its rampant layoffs and cutbacks make your job look better all the time? Believe it or not, donning a pair of "recession goggles" can be good for your career and your mental health. Research shows that an attitude of gratitude in trying times can not only help you keep your job, but get you the job you want.

It's a counterintuitive concept, for sure. In today's economic maelstrom, the most common responses are panic, fear, anger, distrust, and even hostility. But a Harvard Business Review article "How to Protect Your Job in a Recession" studied the characteristics of recession survivors and found that those who avoided being cut were cheerful, likable, generous contributors, and not necessarily the most skilled and proficient.

"Just don't be the guy who's always in a bad mood, reminding colleagues how vulnerable everyone is. Who wants to be in the trenches with him?" caution authors Janet Banks and Diane Coutu.

Workplace relationship expert Courtney Anderson agrees, and observes that tolerance for bad actors – particularly those higher up the food chain – is shrinking.

"The handwriting is on the wall for them in a lot of organizations," says Ms. Anderson, founder of Courtney Anderson & Associates, a human resources firm in Austin, Texas. "When times are good, companies will tolerate a lot. But in this economy, every single decision is double- and triple-checked. It will be tough for the really poor managers to make it through,"

This could explain why the ax is falling higher up the management chain.

Companies are looking to save more money, and bigger salaries yield larger savings. Today's unemployment rate for college-educated workers, 4.1 percent, is the highest it's been since the US Bureau of Labor Statistics began tracking the data in 1992. It is more than twice its prerecession level, according to the Center for Economic and Policy Research, putting the risk of being unemployed proportionately higher for college-educated workers than for less-educated ones.

When productivity is in decline, Anderson says, other factors gain more value in the decisionmaking process about who stays and who goes.

"I used to go to organizations," Anderson says, "and they would describe a horrible situation: 'Felicia curses people out, she yells and is mean, but she delivers.' They would want me to figure out how to keep the person and be flexible because the person delivered. Now, with the current macroeconomic picture, they won't put up with it. There is a financial opportunity to get rid of the people who create problems."

Anderson says corporate leaders are now placing more value on workers who add positive energy to the atmosphere beyond increasing sales and visibility. She says that includes placing those who are grouchy and unpleasant on the layoff list, but also the person who never says anything, the colleague who is invisible and flies under the radar.

"All variations of not contributing and making it a positive, efficient workplace are being considered," Anderson says.

If striking a cheerful pose in tough times doesn't come naturally, consider that it does require conscious effort. And even the act of trying to be happy can make a difference.

"If you stay positive, you'll have more influence on how things play out," advise Ms. Banks and Ms. Coutu.

Banks is a veteran of at least a dozen corporate downsizings, and Coutu has studied resilience in many settings. They say survivors and those who leverage layoffs to their advantage focus on anticipating the needs of customers and those above and below them inside the office.

During periods of numerous layoffs, vacuums occur at all levels, leaving many opportunities to help your boss and the company get more accomplished.

"Prove your value to the firm by showing your relevance to the work at hand," Banks and Coutu note, "which may have shifted since the economy softened."

The key to donning recession goggles is to make decisions you won't regret when the recession fades and more prosperous times return.

"We should affirm to ourselves each day why we are doing what we do," Anderson says. "If you are truly, truly miserable, even in a bad economy, you may be better off doing something else: taking a break, going back to school, or working part time. It's valid to ask ourselves: 'Do I enjoy this? Why am I here?' Reevaluate."

She reminds us that if you find you are in a job exclusively for the paycheck – that is, uh, OK. It is a superb reason to go to work and be satisfied in this economy.

"You can still go to work and have a good day," Anderson says. Especially pay day. "Bad times remind us all of the basics.... We shouldn't take things for granted."

Thursday, March 26, 2009

IBM to cut 5,000 jobs in U.S.

NEW YORK (Reuters) – IBM will cut about 5,000 jobs in the United States, adding to similarly large cuts in the past few months, sources with knowledge of the matter told Reuters on Wednesday.

The job cuts will account for over 4 percent of IBM's U.S. workforce, which totaled around 115,000 at the end of 2008. The sources, who were not authorized to speak publicly on the issue, said the cuts will mostly be in IBM's global services business, which includes outsourcing and consulting services.

An International Business Machines Corp spokesman declined to comment. The company, which had a total workforce of 398,455 as of end 2008, has not disclosed how many jobs it has cut so far this year, but has said it was making "structural changes" to reduce spending and improve productivity.

IBM, which now earns around two-thirds of its revenue from outside the United States, has been expanding its workforce in emerging markets like India and China.

At the end of 2008, employment in the BRIC countries -- Brazil, Russia, India and China-- totaled around 113,000.

IBM has been hit by slower U.S. technology spending, although it has fared better than many rivals thanks to its global footprint and a decreased emphasis on hardware sales.

A month ago, IBM affirmed its full-year forecast of $9.20 earnings per share, and said contract signings for its business services had grown so far this year.

Wednesday's news also comes as IBM is in exclusive talks to buy Sun Microsystems Inc, according to sources familiar with the matter, a move that would create a clear leader in the high-end computer server market.

IBM shares fell 0.42 percent to close at $97.95 on the New York Stock Exchange.

(Reporting by Ritsuko Ando and Jim Finkle; Editing by Gary Hill)

Tuesday, March 24, 2009

Stimulus? U.S. to buy Chinese condoms, ending Alabama jobs

By Mike McGraw | Kansas City Star

Call it a condom conundrum.

At a time when the federal government is spending billions of stimulus dollars to stem the tide of U.S. layoffs, should that same government put even more Americans out of work by buying cheaper foreign products?

In this case, Chinese condoms.

That's the dilemma for the folks at the U.S. Agency for International Development, which has distributed an estimated 10 billion U.S.-made AIDS-preventing condoms in poor countries around the world.

But not anymore.

In a move expected to cost 300 American jobs, the government is switching to cheaper off-shore condoms, including some made in China.

The switch comes despite implied assurances over the years that the agency would continue to buy American whenever possible.

"Of course, we considered how many U.S. jobs would be affected by this move,” said a USAID official who spoke on the condition that he would not be named. But he said the reasons for the change included lower prices (2 cents versus more than 5 cents for U.S.-made condoms) and the fact that Congress dropped “buy American language” in a recent appropriations bill.

Besides, he said, the sole U.S. supplier — an Alabama company called Alatech — had previous delivery problems under the program.

It's clear that Alatech's problems over the years, which apparently have been resolved, may have driven U.S. officials to seek much less expensive foreign-made condoms in the first place.

But that's cold comfort to Fannie Thomas, who has been making AIDS-preventing condoms in southeastern Alabama for nearly 40 years in the small town of Eufaula.

“We pay taxes down here, too, and with all this stimulus money going to save jobs, it seems to me like they (the U.S. government) should share this contract so they can save jobs here in America,” Thomas said.

Thomas and others at the Alatech plant said there aren’t many alternatives for them if it closes down, which is a likely result of the contracting switch.

In fact, the government is close to accepting condoms from two offshore companies: Unidus Corp., which makes condoms in South Korea, and Qingdao Double Butterfly Group, which makes them in China.

<Read the full story at KansasCity.com

Monday, March 23, 2009

More women needing cash go from jobless to topless

By KAREN HAWKINS, Associated Press Writer

CHICAGO – As a bartender and trainer at a national restaurant chain, Rebecca Brown earned a couple thousand dollars in a really good week. Now, as a dancer at Chicago's Pink Monkey gentleman's club, she makes almost that much in one good night.

The tough job market is prompting a growing number of women across the country to dance in strip clubs, appear in adult movies or pose for magazines like Hustler.

Employers across the adult entertainment industry say they're seeing an influx of applications from women who, like Brown, are attracted by the promise of flexible schedules and fast cash. Many have college degrees and held white-collar jobs until the economy soured.

"You're seeing a lot more beautiful women who are eligible to do so many other things," said Gus Poulos, general manager of New York City's Sin City gentleman's club. He said he got 85 responses in just one day to a recent job posting on Craigslist.

The transition to the nightclub scene isn't always a smooth one — from learning to dance in five-inch heels to dealing with the jeers of some customers.

Some performers said they were initially so nervous that only alcohol could calm their nerves.

"It is like giving a speech, but instead of imagining everyone naked, you're the one who's naked," Brown, 29, said.

Eva Stone, a 25-year-old dancer at the Pink Monkey, said dealing with occasional verbal abuse from patrons requires "a thick skin."

Makers of adult films cautioned that women shouldn't rush into the decision to make adult movies without considering the effect on their lives.

"Once you decide to be an adult actress, it impacts your relationship with everyone," said Steven Hirsch, co-chairman of adult film giant Vivid Entertainment Group. "Once you make an adult film, it never goes away."

The women at the Pink Monkey say dancing at a strip club might not have been their first career choice, but they entered the business with their eyes wide open. The job gives them more control and flexibility than sitting in a cubicle, and "it's easy, it's fun and all of us girls ... look out for each other," Brown said.

In this economy, "desperate measures are becoming far more acceptable," said Jonathan Alpert, a New York City-based psychotherapist who's had clients who worked in adult entertainment.

For some, dancing is temporary, a way to pay for college loans or other bills. Others say they've found their niche.

Dancers at the upscale Rick's Caberet clubs in New York City and Miami can make $100,000 to $300,000 a year — in cash — even with the economic downturn, club spokesman Allan Priaulx said.

Priaulx said 20 to 30 women a week are applying for jobs at the New York club, double the number of a year ago.

Rhode Island's Foxy Lady held a job fair Saturday, seeking to fill about 35 positions for dancers, masseuses, bartenders and bouncers. The Providence Journal reported that more than 150 job seekers showed up to apply for work at the strip club. Foxy Lady co-owner Tom Tsoumas said a recent promotion to cut prices helped the club regain business lost due to the bad economy, forcing it to hire more employees.

Still, analysts say, the industry isn't immune to the economic recession. Business is down an estimated 30 percent across all segments, including adult films, gentleman's clubs, magazines and novelty shops, said Paul Fishbein, president of AVN Media Network, an adult entertainment company that has a widely distributed trade publication and an award show.

"In the past, people have said this industry is recession-proof," said Eric Wold, director of research for financial services firm Merriman Curhan Ford. "I definitely don't see that; maybe recession-resistant."

Strip club dancers and managers said they're drawing in the same number of customers, but fewer high rollers.

"They're not getting the big spenders," said Angelina Spencer, executive director of the Association of Club Executives, a trade group for adult nightclubs. "They're not getting the guys who come in and drop $3,000 to $4,000 a night anymore."

Still, the clubs' operating structure leaves them with low overhead and profit margins of up to 50 percent, Wold said.

Dancers are independent contractors, paying clubs a nightly flat fee depending on how long they work. At the Pink Monkey, for example, dancers who arrive at 7 p.m. Sunday through Thursday pay a $40 "house fee," while women who don't arrive until midnight pay $90. And they keep their tips.

Wold and others say it's almost impossible to estimate the size of the adult entertainment industry because few companies are publicly traded. He does pay close attention to three that are: Lakewood, Colo.-based VCG Holding and Houston-based Rick's Caberet, which own clubs, and New Frontier Media, a Boulder, Colo.-based adult film producer and distributor.

All three are profitable.

Rick's Caberet had $60 million in revenue in its 2008 fiscal year, up from $32 million the year before, Wold said, and he estimates VCG will have $57 million for last year, compared with $40.5 million in FY2007. New Frontier Media generates more than $400 million in consumer buying a year.

Larry Flynt, whose half-billion dollar Hustler empire publishes magazines, produces and distributes films and operates a casino, said he's continued to do well. But he doesn't expect those who are solely in the film business to survive.

"A lot of the small studios are out of business now, there's no doubt about that," Flynt said.

Adult magazines also are struggling along with the larger publishing industry, and have to cut pages like everyone else.

But the economic realities aren't keeping jobseekers away.

Vivid Entertainment's Hirsch said the number of women in his business has doubled in the last couple years, with roughly 800 working as adult actresses. "It is more competitive than I've seen it in 25 years," he said.

That doesn't mean all the newcomers are planning on lengthy careers in the industry.

Stone, who has a bachelor's degree in graphic design, took up dancing four years ago to help pay her student loans. She plans to go to graduate school this year to pursue a master's in education.

Brown, meanwhile, has a ready answer for those critical of her career choice.

"I have job security," she said.

Monday, November 3, 2008

American Express will cut 7,000 jobs



(AP) - In a stark acknowledgment of the tough times ahead in the credit card industry, American Express Co. said Thursday that it plans to cut 7,000 jobs, or about 10% of its worldwide work force, in an effort to slash costs by $1.8 billion in 2009.


The Manhattan-based credit card issuer said it is also suspending management level salary increases next year and instituting a hiring freeze.

The job cuts will be across various business units, but will primarily focus on management positions, the company said.

Additionally, American Express said it plans to scale back investments in technology and marketing and business development, and streamline costs associated with some rewards programs. The company also expects to cut expenses for consulting and other professional services, travel and entertainment and general overhead.

As a result, American Express plans to take a restructuring charge of between $240 million and $290 million in the fourth quarter.

The company has been gearing up for a big restructuring for some time, first announcing in July that it planned to reduce overall costs and staffing levels, and take a related charge during the second half of the year.

"We've been engaged for the past few months in an intensive, companywide review of priorities and staffing levels," said Kenneth Chenault, chairman and chief executive, in a statement. "The re-engineering program we announced today will help us to manage through one of the most challenging economic environments we've seen in many decades. It will also put us in position to ramp up investment spending as economic conditions improve so that we can take advantage of the substantial opportunities that will be available to us over the medium to long term."

Last week, American Express reported a better-than-expected 24% decline in third-quarter profit. But the report echoed recent results from J.P. Morgan Chase & Co., Citigroup Inc. and Capital One Financial Corp. showing that the credit card environment is worsening as cardholders have trouble paying off debt and pull back their spending.

Even a company like American Express, which prides itself on catering to a more well-heeled clientele, is not immune.

The company's customers tend to be more affluent than those of other card companies, but they are more heavily concentrated in California and Florida, where the slumping housing market is taking a toll. American Express also has a higher percentage of small-business customers, and small businesses tend to miss payments more than individuals, executives have said.

"Cardmember spending is likely to remain soft," Mr. Chenault said in a statement last week. "Loan growth will be restrained, in part because of the steps we are taking to reduce credit risks, and credit indicators are likely to reflect the continued downturn in the economy and throughout the housing sector."

American Express has been able to finance its operations amid the tight credit markets, but the efforts have been tougher and more costly.

Shares rose $1.23, or 4.9%, to $26.44 in morning trading. Shares have traded between $20.50 and $61.55 in the past 12 months.

©Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.