18:00 GMT23 November 2020
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    Major businesses across the world are facing ruin as the coronavirus pandemic has led to massive collapses in investment and declining economic growth as a result of national restrictions and falling demand.

    HSBC has initiated a restructuring of its commercial banking business in the UK which could see nearly 300 jobs axed, Reuters reported on Wednesday.

    The Bank is set to introduce the cuts as part of a wider reshuffling project that was announced in February as the global revenue environment is increasingly dire.

    “In line with the Group strategy announced in February, we continue to restructure and review the roles required to transform the bank”, a HSBC spokesperson said.

    The largest bank in Europe resumed plans in June to slash around 35,000 jobs that it previously suspended following the coronavirus pandemic, as it tries to maneuver declining profits as the outbreak continues.

    Chief Executive Noel Quinn claims that restructuring is necessary in order to help the bank's profits as economic forecasts look increasingly bleak for the Asia-focused financial company.

    In August, HSBC said that its annual loan losses for the year could surpass prior estimates to reach as high as $13 billion, as bank’s retail and corporate customers are pummelled by global stagnating activity and demand.

    Small and medium-sized firms are the primary recipient of loans from the corporation's commercial banking business.

    The division shares with its competitors that it has struggled in recent years to raise revenue amid increasing market rivalry and falling interest rates that limit the margins between deposits banks intake and loans issued from borrowers.

    Other moves including in the bank's global restructuring project also involve the sale of its French units, on which the company may face a massive loss, Reuters reported in September.

    Tags:
    pandemic, coronavirus, COVID-19, HSBC
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