The retailer said it would axe 450 jobs as annual sales are set to be "significantly less" than last year.
"As a creative business at the forefront of retail, we have a proud history of leading the way, however the speed and magnitude of what is happening right now and the impact on trading, means we must make some more fundamental changes to our organisation to stay ahead and realise a more sustainable future," said group managing director Anne Pitcher.
Selfridges is reviewing all non-essential expenses and has paused a number of projects and initiatives.