Tycoon Branson lays off staff at Virgin Group headquarters

Sir Richard Branson’s Virgin Group is cutting dozens of jobs at its London base as part of the integration of its two companies

Sky News has learned that Virgin Group will cut 8% of its 425 head office staff following the decision to merge Virgin Management, its brands and licensing arm and loyalty program Virgin Red.

The job cuts come as Sir Richard prepares to reap a windfall totaling more than £400 million from the sale of his minority stake in Virgin Money.

Last week, a surprising agreement was reached across the country Acquisition of high street bank Virgin Group will also reportedly receive an exit fee of £250 million when its brands disappear from the merged group.

Virgin brand businesses employ approximately 60,000 people in 35 countries around the world.

One source said the cuts were aimed at eliminating “duplication and streamlining operations.”

Some Virgin companies, such as Virgin Hotels and Virgin Management, are wholly owned by Sir Richard and the Virgin Group.

Others are based on joint ownership, including Delta Air Lines, which holds a 49% stake in Virgin Atlantic.

The US-based airline also owns a 25% stake in Virgin Red.

A Virgin Group spokesperson said: “We have recently announced a number of proposed changes to complete the integration of two Virgin Group businesses – Virgin Management, our brands and licensing company, and Virgin Red, our loyalty program.

“We first began integrating these companies more than three years ago and these changes are designed to streamline our operations and position us for long-term growth.

“These changes will reduce our headcount by approximately 8%, or 32 positions, and we will do our best to support affected employees.”