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- Virgin Active has confirmed it is cutting a "small percentage" of jobs at its SA head office.
- This is part of efforts to improve efficiencies and cut costs, the group said.
- But staff at its SA gyms won't be affected.
- For more financial news, go to the News24 Business front page.
Virgin Active, which is 67% owned by Christo Wiese-backed Brait, has confirmed it is restructuring, which will affect a "small percentage" of jobs at its local head office in Claremont, Cape Town.
The company told News24 that this is part of a plan to cut unnecessary costs, streamline its operations, and improve efficiencies across its global operations.
Virgin Active had 611 000 members in southern Africa as of the end of March, and 165 000 in its second biggest market, Italy. Virgin Active also had 10 clubs in Australia, eight in Thailand, six in Singapore and more than 30 in the UK.
The restructuring will not affect any staff at its gym clubs. It employs 3 200 people in South Africa.
READ | EXCLUSIVE | Convicted Health & Racquet fraudsters sub-let lucrative site to Virgin Active
Virgin Active told News24 that it continued to be profitable, was cash generative, and saw "positive trends" in membership growth.
"The business has been reinvesting significant capital into both upgrading clubs and installing backup power solutions which ensure that our members can enjoy our facilities through load shedding," it added.
Virgin Active is also investing to transform their gyms into workspaces, as more of its members work from home.
This meant that people were increasingly also working from the gym, prompting the group to direct part of a new R403 million spend towards office space and meeting rooms.
READ | Virgin Active to expand office space and meeting rooms in gyms
Meanwhile, a separate listing of the health chain on the JSE may be on the cards, with Brait saying in June it was looking to exit its portfolio of assets by the end of 2024 as it looked to unlock value for shareholders.
Virgin Active accounts for 53% of Brait's R17.2 billion in assets.
