PNC to Cut 5,800 by 2011

PNC CEO Jim Rohr says he hopes most of the cuts will be made through attrition with very few layoffs. The job cuts represent about 10% of the new company’s 59,595 person workforce and Rohr says the company usually sees about 15% attrition. National City had announced 4,000 job cuts in the 3rd quarter of last year and those are included in the 5,800 number. Rohr says about 500 of the new cuts will be made as branches are consolidated. The consolidation move comes as PNC completes it acquisition of National City. The markets served by the two banks overlap mostly in western Pennsylvania and Southwestern Ohio. The job cuts were announced at the same time that PNC announced its fourth quarter results. PNC lost $248 million, which included $380 million in losses connected to acquisition of the troubled National City. The 77-cents per share loss compares to a 52 cent per share profit in the same quarter last year. Rohr says in spite of the troubled economic times he thinks management of the newly merged back will be able to find new savings, cut bad debt and reduce risk to build a stronger company.