Redundancies are expected to be made in parts of the business most affected by the coronavirus pandemic
In a note to colleagues, the Managing Director of Harrods, Michael Ward, has confirmed the luxury department store chain will be cutting more than 10% of its workforce.
Jobs are expected to be slashed from parts of the business that have been most impacted by loss of trading due to coronavirus.
In his letter, Ward said the decision was taken “with a heavy heart” and described the last few months of lockdown as a “terrible period for the country”.
He said: “I want to be upfront as to how we came to this decision, and what this will mean for you.
“I have been honest about the impact this pandemic has had, and will continue to have, on our business.
“I am sorry to say that after exploring every option available, we now recognise that we need to make changes to our operational structure, specifically looking at reducing our headcount across the business by up to 14% of our current workforce of 4,800 colleagues.”
The announcement is the latest blow to the retail sector, which has been hard hit by the Covid-19 pandemic.
Harrods’ competitor John Lewis is also preparing to make cuts to its staff, stores and headquarters.
Meanwhile, Debenhams has announced some stores will not reopen after the coronavirus lockdown forced retailers to temporarily close.