PNC Financial Services Group in Pittsburgh plans to cut about 4% of its workforce as part of a broader cost-cutting plan.
The $557 billion-asset company said the layoffs should lower annual expenses by $325 million in 2024. PNC plans to incur a one-time charge of $150 million in the fourth quarter tied to the cuts.
The percentage represents about 2,300 full-time positions, based on PNC’s headcount on Sept. 30.
The job cuts are part of a plan to cut $725 million of expenses in 2024.
Executives said during a call to discuss quarterly earnings that the cuts reflect lower interest income and a decline in lending activity. Revenue fell by 1.1% from the second quarter and by 5.6% from a year earlier, to $5.3 billion.
“What’s new is basically dropping the run rate related to personnel and just tightening the ship in what is a tougher revenue environment,” Bill Demchak, PNC’s CEO, said during the call.
PNC’s earnings rose by 4.7% from the second quarter but fell by 4.3% from a year earlier, to $1.6 billion.