Viasat to Layoff 800 Employees as it Integrates Inmarsat Business
Viasat is laying off 800 employees, about 10% of its workforce, as it is integrating the Inmarsat business post-acquisition. Viasat announced the reduction on Thursday and said it will be spread across the business in terms of geographies and divisions.
These layoffs come after Viasat closed the Inmarsat acquisition in May. Post-layoffs Viasat will still have global operations with a majority of its employees continuing to be located in the United States and the U.K.
The operator said this move will save $100 million in annual expenses, beginning in fiscal year 2025. It will also help the company reach its fiscal year 2025 CapEx target of $1.4 billion to $1.5 billion. The reduction will cost Viasat $45 million, which will be incurred predominantly in the second half of fiscal year 2024.
“The changes we are announcing today are consistent with our goals to focus our spending toward our biggest growth opportunities and position Viasat for long-term success, while expanding margins and profitability,” Viasat President Guru Gowrappan said. “At the same time, the decision to reduce our workforce is a very difficult one, and not something we take lightly. We would like to express our gratitude to our departing colleagues for their dedication, hard work, and contributions, which have been integral to Viasat’s success story.”
The operator is also dealing with technical issues on the flagship ViaSat-3 satellite, which will deliver just a fraction of the planned capacity. Despite the ViaSat-3 issues, the company said it will not order another satellite and leadership believes Viasat can meet its customer commitments with its current fleet with the Inmarsat acquisition.
Last month, Viasat confirmed it is finalizing insurance claims for both ViaSat-3 and the Inmarsat-6 F2, which suffered an anomaly with its power subsystem. Viasat has insurance coverage of $420 million for ViaSat-3, and $348 million for the I6 F2 satellite. The operator plans to finalize both claims before the end of the year.