NEW YORK — Could American Express become one of the victims ofthe current economic downturn? That is the question that has somecard analysts buzzing after the card issuer announced today that itwill cut 10% of its workforce, or about 7,000 jobs.

The cuts will occur across the board in the company and will beaccompanied by cuts in other expenditures, includingmanagement-level salary increases.

Analysts noted that under its historic business model, focusedsharply on well-heeled consumers with very strong credit scores whopay their entire balances every month, the card issuer would bebetter positioned to weather the most recent downturn. But in aneffort to speed growth, American Express had lowered some of itscard issuing standards and started allowing cardholders to revolvebalances. This change has left the card brand more vulnerable tothe changing economic conditions, analysts said.