Major U.S. bank PNC may lay off over 2,400 workers, as per a recent report.
PNC, one of the largest banks in the United States, has announced a round of layoffs that will impact approximately 2,000 employees, according to reports. The layoffs, which are expected to take place from October 6, are part of the bank's cost reduction measures and are estimated to result in a one-time $150 million charge in the fourth quarter.
The layoffs will hit employees across various departments, including corporate workforce, commercial lending, and anti-money laundering. Some employees were notified of their layoffs on Tuesday during a mandatory Webex conference call, where they were muted and the call ended without taking questions.
Reports of the layoffs at PNC surfaced earlier this week in several news outlets. The bank had foreshadowed the layoffs on Tuesday, citing a review of its organizational structure for expense management. PNC aims to cut $725 million in expenses by the end of 2024.
The layoffs are in response to muted lending activity and declining interest income. PNC CEO Bill Demchak stated that the layoffs would help the bank more effectively and efficiently deliver for its customers and stakeholders.
The layoffs may indicate that some legacy employees brought over in PNC's acquisition of BBVA's U.S. footprint were affected. Several other banks, including Ally Financial, Wells Fargo, Citi, Truist, Barclays, and Goldman Sachs, have also indicated they expect to shrink headcount in recent weeks.
This is not the first time PNC has undergone downsizing this year. In July, the bank underwent a limited number of layoffs in its home equity and mortgage businesses. Some affected employees were hired as recently as July.
The employee who spoke to American Banker was informed that her last day at the bank would be Dec. 1. The layoffs this week affected employees based in Raleigh, North Carolina; Birmingham, Alabama; and Pittsburgh. PNC has announced a 4% headcount reduction, affecting more than 2,400 employees based on December headcount figures. The bank expects to save $325 million in personnel expenses in 2024 due to the layoffs.
PNC's CEO Bill Demchak hinted at a more structural program impacting 2024 expenses during a conference last month. He reiterated this sentiment, stating that the layoffs are part of a broader initiative to streamline the bank's operations and focus on growth opportunities.
As the banking industry continues to evolve, it is likely that more changes will be on the horizon for banks like PNC. However, the bank remains committed to delivering value to its customers and stakeholders.
