The recession reached the refined environs of 181 Piccadilly yesterday when Fortnum & Mason said that it was cutting jobs.

The upmarket London retailer said that it was consulting staff but would not comment on how many redundancies could be involved. However, it is thought that about 55 staff, or 10 per cent of the workforce, will be made redundant.

Beverley Aspinall, the managing director, told employees at the department store that the company would have to respond to tough trading conditions despite benefiting from the sales surge in early January.

Fortnum & Mason, known as the Queen's grocer, sells high-end foods and other prestige products, but the luxury retail sector has suffered during the downturn as even well-heeled consumers cut spending.

The store said that staff in retail and hospitality were likely to be “largely unaffected” by the changes.

A spokesman said: “It is hoped that during the consultation process we will be able to explore opportunities for meeting the efficiency improvements required through voluntary means and natural wastage.”

The store, owned by the Weston family, has been a supplier to royalty since 1707, when co-founder William Fortnum was appointed footman in the household of Queen Anne.

Meanwhile, Charter International, the engineering company granted a Royal Warrant by Queen Victoria in 1889, said that it would cut 940 jobs, or 10 per cent of the workforce, at its ESAB welding and cutting business.

About 450 jobs are being cut at Perkins Engine, the industrial and agricultural engine manufacturer.

The Peterborough-based company said that 100 full-time office roles and 350 hourly paid workers would go.

Meanwhile, in the United States, still reeling after more than 45,000 jobs were lost on Monday, Corning, the glass and ceramics goup, said that it was cutting 4,900 jobs — 3,500 permanent roles and 1,400 temporary jobs — or 13 per cent of its payroll, as demand slumps for flatscreen televisions and computers.

Clariant, the Swiss specialty chemicals company, said that it was cutting 1,000 jobs.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive