Richard Branson Pumps £215m Into Virgin Group To Save Jobs

Virgin boss Richard Branson has said that he will pump £215 million ($250m) into the Virgin Group. The cash injection is designed to “protect [employees] and save jobs”.

Virgin Group, Richard Branson, Cash Injection
Virgin boss Richard Branson will pump $250 million into the Virgin Group. Photo: Getty Images

The Virgin Group has taken a strong hit from coronavirus. While most readers will be aware of Virgin’s airline empire including Virgin Atlantic and Virgin Australia, the group has a number of other interests. This ranges everywhere from cruises and health clubs to WiFi and purified water. As such, a large chunk of its different businesses have been affected by the pandemic. This includes the airline sector.

$250 million investment

Sir Richard Branson will be pumping a quarter of a billion dollars into the Virgin Group. He has said that this money is being spent to protect employees and to save jobs. Virgin Atlantic employees had already agreed to each taking eight weeks of unpaid leave spread across the next six months in order to weather the storm.

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However, Branson is desperate to avoid the redundancies experienced in the wake of the 9/11 terror attacks. In a blog post, Branson wrote:

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“I remember the days and weeks after 9/11, when all airlines and travel companies took extremely painful decisions to make redundancies in order to keep businesses afloat and the dramatic impact it had on people then. We are doing all we can to stop that happening now.”

Virgin Atlantic
Virgin Atlantic’s operations have taken a huge hit from the coronavirus pandemic. Photo: Getty

He went on to describe the magnitude of the crisis facing the industry, and indeed the world. Two weeks ago, British Airways CEO called it “a crisis of global proportions like no other”. Meanwhile, Branson used the words “This is the most significant crisis the world has experienced in my lifetime”.

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Focusing on job security and wellbeing

Employees have always been at the center of the Virgin Group’s operations. In fact, Branson is known for his attitude to putting employees before customers. It is the company’s belief that happy employees make happy customers.

Last week there were calls for Branson to pay the lost wages of Virgin Atlantic employees. While he is not taking this specific action, Branson definitely wants to make a stand in the matter. The cash injection will hopefully safeguard the roles of Virgin’s 70,000 employees across 35 countries.

Virgin Atlantic
Employees come first at Virgin. Photo: Getty Images

Unfortunately, it seems as though the situation presented to the world will get worse before it gets better. In fact, as it stands a significant number of airlines have entirely grounded their fleets for the next month or so.

Virgin Atlantic has stopped short of such extreme measures with up to seven aircraft still in operations daily. Hopefully, the cash injection announced by Richard Branson will give Virgin’s employees some hope in these times of darkness.

What do you make of Branson’s gesture? Should others who are able to follow in his footsteps? Let us know your thoughts in the comments.

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Daniel Baglietto Seymour

Well Done Richard Branson!

JFP

This type of management culture was why Virgin America was doomed from the start and was forced out of existence by merger with Alaska.

Malcolm Harris

What about the Virgin passengers left in limbo around the world? My wife and I have been ignored since Virgin cancelled our flight home from Barbados next Wednesday March 25. No info from the airline and left to our devices. Malcolm Harris.

Chuck

Where was Richard when Flybe failed???
He and a consortium were to transform Flybe into “Virgin Connect”.
Looks like he hacked off the arms (Flybe) to save the carcass (Virgin Atlantic).

The true sign of a Billionaire 💲💲💲💲💲

Gary

Just seen a very dark trail of vapour over Leeds from the engines of a jet flying overhead have never seen any as b***k before are there any reports of a plane with engine trouble …. managed to get a couple of pictures

john

Nice Partner he has there.

Doz

Only because the media shamed him into doing it. The guy is a k**b.

Anonymous

This person and all his businesses should be banned from public procurement. His entrepreneurship is mismanaging tax payer’s money and begging for more. He’s only done this to put himself back in the queue for the government grant after hearing the truth from public and MPs.

Bain H. Nathaniel

Excellent thought and action.Truely philanthrophic.Gob bless you Sir Branson.

Gary

You write ” the cash injection ( $250 million ) will hopefully safeguard the roles of the 70 000 virgin staff in 35 countries ” Where did you get your information from?? From Virgin’s PR company? Or your own estimation? Either one , it is a grossly over exaggerated +,misleading… Read more »

Anon

Where is my comment , what’s happened to it?? Removed cause I told it like it is , exposed Richard Branson’s true colours..he was anything but a caring philanthropist!! He stood by and didn’t intervene when in 2013 all the overseas Virgin Atlantic employees , we all lost our jobs… Read more »