Virgin Active to cut salaries by 75% in 'temporary layoffs' during lockdown
Virgin Active says “temporary layoffs” are on the cards for staff at its gyms, head office and contact centre.
The company has denied rumours about staff being retrenched, saying on Monday that staff would be temporarily “laid off” while receiving 25% of their salaries.
“To support our staff, they will receive at least 25% of their income despite suspended employment,” a Virgin Active spokesperson told TimesLIVE. “A reopening of gyms will allow us to abandon these temporary layoffs and reinstate our people to their jobs.”
The company said since the lockdown was implemented on March 27, it had not received membership revenue.
“All member debit orders were automatically frozen at the start of lockdown. During this time we have continued to pay staff. This position is not sustainable long term, with no date for reopening agreed with the government, and as such we have had to move ahead with temporary layoffs across our clubs, national head office and contact centre.”
With gyms scheduled to reopen only at level 1 of the lockdown, the company said it had kept pushing forward, innovating and investing in the online space to bring workouts to its members and the public anytime, anywhere.