PNC Financial Services Group on Tuesday announced plans to cut about 3,000 jobs — about 12 percent of its work force — as it reported that its earnings fell 7 percent in the second quarter.
PNC reported earnings of $282 million, or 98 cents per share, down from $304 million, or $1.07 per share, in the same period last year. Analysts surveyed by Thomson Financial had predicted earnings of $1.05 per share.
Second quarter earnings included $18 million in integration costs and dilution from operations related to the acquisition of Riggs National Corp.
About half the 3,000 positions will be eliminated through attrition and the termination of open positions, the company said.
PNC currently employs about 24,500 workers in 36 states, including more than 7,000 in western Pennsylvania. The bank operates 774 branches in six states.
At the company's annual meeting in April, PNC Chairman James E. Rohr announced a cost-cutting initiative that he said was intended to save the company $300 million and increase revenue.
In the first six months of the year, PNC earned $636 million, or $2.22 per share, compared with $632 million, or $2.22 per share, for the same period last year.
"We produced a strong quarter despite challenging capital markets conditions," said James E. Rohr, chairman and chief executive officer. "Loans, deposits and our customer base continued to grow, and asset quality remained excellent. These strong trends, along with the many early successes of our entry into the greater Washington, D.C., marketplace, speak to the strength of the PNC franchise."