Harrods, the iconic luxury department store, is cutting nearly 700 jobs after struggling during the COVID-19 pandemic

• UK luxury department store Harrods is cutting nearly 700 jobs, around 14% of its workforce.
• In a memo to employees on Tuesday, CEO Michael Ward said the cuts were a direct result of the pandemic, which kept Harrods' flagship store closed for several months.
• Areas of the business that were most impacted by the lockdown face job losses, he said.

The UK's most iconic luxury department store is axing nearly 700 jobs to cut down on costs after being hit hard by the pandemic.

Harrods CEO Michael Ward told employees about the cuts in a memo early on Tuesday, June 30.

"With a heavy-heart, today I need to confirm that due to the ongoing impacts of this pandemic, we as a business will need to make reductions to our workforce," Ward said, adding that 14% of its 4,800 staff would be impacted.

"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.

"I am sorry to say that after exploring every option available, we now recognise that we need to make changes to our operational structure," he added.

Ward said the axe would fall in areas of the business hardest hit by the lockdown.

Harrods is one of many retailers across the globe to have faced immense financial pressure during the pandemic. Its flagship store in Knightsbridge, London, remained closed for several months.

In May, the company announced plans to open its first outlet store in London, as it looked to shift excess stock that had built up during lockdown.