Branson expands empire as Virgin cuts jobs

Even a $101.4 million loss and plans to cut 400 jobs from his global business empire can't keep the indefatigable Richard Branson down.

On the same day Virgin Blue - the Australian branch of his airline - posted its loss, Branson jumped off a red tram in Melbourne's CBD to announce he was expanding his businesses and creating more jobs than he was losing.

Branson, with his trademark long hair and beard, joined his standard bevy of attractive young models on the lunchtime tram to launch his latest venture, Virgin Active gyms, in Australia.

The billionaire said that despite the occasional loss, moguls like him had a responsibility, as well as an opportunity, to expand as the global economy shrinks.

"It's a great time to get sites (for gyms), other businesses aren't expanding," he told reporters.

"It's important companies like Virgin that can afford to expand, do expand in times of recession.

"Otherwise we'll never get out of these recessions, you'll just find more and more people lose jobs, everybody freezes, nobody does anything and it's a self-fulfilling prophecy."