PNC says it will cut workforce by 4%

PNC Financial Services Group said it will cut its workforce by 4% by year’s end as it looks to pare down expenses.

The move is expected to slash costs by $325 million in 2024, the Downtown Pittsburgh-based bank said on its third-quarter earnings call Friday.

PNC did not specify what types of positions or departments would be targeted by the cuts.

The financial firm is maintaining its annual continuous improvement program, which is targeting another $450 million in cuts. The money from that program typically is reinvested in the company, executives said.

“All told, we are implementing more than $725 million of expense management actions that will have impact on 2024,” CEO Bill Demchak told analysts Friday.

PNC first announced the staff cuts Tuesday but didn’t confirm how many people would be affected.

The company employed about 61,500 as of December, which included about 59,900 full-time and 1,600 part-time employees. About 12,000 people work in the Pittsburgh region.

Nathan Stovall, director of financial institutions research at S&P Global Market Intelligence, noted the financial sector overall is pulling back as factors such as higher interest rates bite into revenue.

“I don’t think PNC is in that dissimilar a camp from where we see a lot of institutions right now. PNC, like everybody else, is facing revenue headwinds,” Stovall said, citing the higher costs of deposits, slowing mortgage banking and companies hesitating to take out loans.

Severance, benefits and other termination costs will total about $150 million, PNC officials said.

The bank reported net income of $1.57 billion, or $3.60 per share, for the third quarter, down from $1.64 billion, or $3.78 per share, in the same period last year.

PNC has closed several bank branches in the Pittsburgh region over the years, including one in Vandergrift and one on the Duquesne University campus this year. In 2020, PNC closed 52 branches, including nine in Western Pennsylvania.