(Updates with HSBC's confirmation throughout.)

HSBC (HSBC) is shutting down its business banking portfolio in the US, a company spokesperson confirmed to MT Newswires in an email Friday.

"This decision is in line with our broader efforts to simplify operations and focus on HSBC's key strengths and areas where we hold a competitive advantage," the spokesperson said.

The British lender is "supporting impacted clients" and will retain some customers in its mid-market and global network banking business, the spokesperson said.

The bank laid off 40 employees and informed around 4,400 clients, mostly domestic companies with annual revenue of up to $50 million, The Wall Street Journal reported Friday, citing a company spokesperson.

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