Virgin Active is retrenching staff at its gyms and head office – here's how many people will be affected
- Virgin Active has started a restructuring process at its head office and some of its gymnasiums around South Africa.
- Virgin Active’s largest shareholder Brait is reportedly looking for a buyer for at least some of its stake.
- The gym company said 59 employees have been affected by retrenchments.
- For more stories, go to Business Insider SA.
Virgin Active South Africa - the country’s largest gym network - has embarked on a restructuring process at its head office and at some of its gymnasiums in a bid to improve efficiency.
Spokesperson Carla White said the company has managed to contain retrenchments to 59 people.
“It is imperative to structure our teams in such a way that our employees are deployed most effectively to meet our business objectives,” White told Business Insider South Africa.
“We are in the latter stages of consulting with impacted people, [we] have managed to find alternative roles for most.”
White said no gymnasiums are due to be closed as part of the process.
Virgin Active has gymnasiums in several countries, including South Africa, Britain and Italy.
The company, 72% owned by investment firm Brait, has come under pressure in recent years with income for the financial year to the end of December only growing by 1% to £587 million (roughly R10.8 billion).
According to a recent report by Sky News, Brait, in which Christo Wiese is the biggest shareholder, is looking for a buyer for at least some of its stake in Virgin Active.
While South African adult members are 59% of Virgin Active’s overall consumer base, they only represent 39% of the company’s income.
Globally, Virgin Active has over 1.2 million members, an increase of 2% since 2018.
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