Sir Richard Branson’s Virgin Group is set to trim its workforce at its London headquarters as part of a consolidation effort involving two of his enterprises.
It’s been revealed that Virgin Group will be reducing its head office staff by 8%, affecting approximately 32 out of its 425-strong workforce. This decision comes following the amalgamation of Virgin Management, the brand and licensing division, with the loyalty program Virgin Red.
These job cuts coincide with Sir Richard Branson’s anticipation of receiving a windfall exceeding £400 million from the potential sale of his minority stake in Virgin Money. Last week, Nationwide surprised the market by striking a deal to acquire the high street bank for nearly £3 billion, with Virgin Group also poised to collect a £250 million exit fee as its brand phases out within the merged entity.
Virgin-branded enterprises collectively employ roughly 60,000 individuals across 35 countries globally.
According to insiders, the redundancies aim to eliminate duplication and streamline operations across the integrated entities.
Certain Virgin companies, such as Virgin Hotels Collection and Virgin Management, are wholly owned by Sir Richard and Virgin Group.
A spokesperson for Virgin Group commented on the proposed changes, stating: “We have recently announced some proposed changes to complete the integration of two businesses in the Virgin Group – Virgin Management, our brand and licensing company, and Virgin Red, our loyalty programme.
“We first initiated the integration of these companies more than three years ago, and these changes are designed to streamline our operations and set us up for long-term growth.
“The changes will reduce our workforce by around 8% – or 32 roles – and we will do as much as we can to support the employees impacted.”