HSBC has reportedly launched a restructuring of its commercial banking business in the UK that will lead to around 300 job cuts.
The cuts are part of a wider strategy overhaul announced by the banking giant earlier this year as it seeks to slash costs and reinvigorate its business in the face of global economic uncertainty and squeezed margins.
The three-year restructuring effort aims to cut $4.5bn (£3.4bn) in costs and will result in the loss of 35,000 jobs over the next three years. HSBC resumed the job cuts in June after putting the plans on pause when the coronavirus pandemic hit.
“In line with the group strategy announced in February, we continue to restructure and review the roles required to transform the bank,” an HSBC spokesperson. The bank would not comment on specific figures for the job losses, which were first reported by Reuters.
Chief executive Noel Quinn has said HSBC’s drastic restructuring plans are necessary to improve the bank’s profitability, with forecasts pointing to a challenging period ahead for the bank.
In August, the Asia-focused lender warned its loan losses for the year could exceed previous estimates and reach as much as $13bn, as Covid-19 hits its retail and corporate customers worldwide.
HSBC’s commercial banking business provides loans and other banking services mainly to small and medium-sized businesses.
The unit, like many rivals, has struggled to improve revenues in recent years amid rising competition in the sector and pressure on margins from extremely low interest rates.
HSBC has already announced plans to merge its private banking and wealth business, cut back its European equity business, and reduce its US branch network as part of its restructuring efforts.
The bank is set to release its third-quarter results next week.