Harrods is axing up to 700 staff with 14 per cent of workforce being made redundant in wake of coronavirus pandemic

HARRODS is axing up to 700 staff in the wake of the coronavirus pandemic.

Up to 14 per cent of the workforce will be made redundant, which CEO Michael Ward said was needed to “aid our recovery in the short-term, but also to protect the business in the longer term”.

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Ward broke the news “with a heavy heart” to the store's 4,800 staff members yesterday morning via an internal message.

“I have been honest about the impact this pandemic has had, and will continue to have, on our business,” said Ward.

“That it is going to take time and a drastic improvement in external conditions for our business to recover and return to growth.

“The necessary social distancing requirements to protect employees and customers is having a huge impact on our ability to trade, while the devastation in international travel has meant we have lost key customers coming to our store and frontline operations.

“While early signs since re-opening are optimistic, this recovery will take longer than any of us would like.

He said the coronavirus pandemic was the “biggest challenge” Harrods had faced in his 15 years as the boss of the store and has been hit by “circumstances beyond any of our control”.

Ward also reassured staff that the company would help them where they could to find alternative employment.

“Nothing compares to the sadness and loss at having to let valued colleagues go,” he said.

One staff member told the Sun that those working in the food and beverage part of the company were preparing to be the worst hit.

They added: “All of the employees have been split into groups and are going to be able to ask questions when possible.

“Those who are vulnerable or in danger have been contacted, but they have said that we could all be gone by the 10th of July.

“People are only going back to work on the second, as they are reopening the restaurant and things on the fourth.

“Everyone is obviously a bit stressed as it’s come out of the blue and no one was expecting it to be their last paycheque.”

Another added that workers on probation who had been with the company for less than a year were those most liked to be cut.

“Everyone is gutted, those who were the last through the door will be the first ones out.

“It has financially stressed everyone out, and we have been told that the final decision will be announced by August.

“It just came out of nowhere really, no one expected it. Obviously it’s really quiet in Harrods and the customers are the ones who pay our wages.

“Without them there is no money and even the staff have been told they can’t use their discount anymore because that is how much they are struggling.”

A Harrods spokeswoman said: “Redundancies will come from those parts of the business most adversely impacted by the loss of trade resulting from the pandemic and lockdown.

“This decision was made following a thorough review into all available options, but driven by a need to aid recovery in the short-term through cutting costs and protecting the business in the longer-term.”