Global communications company Viasat has announced that it will be laying off 800 employees, which accounts for about 10% of its workforce. The impact of these layoffs will be felt across the company’s geographies and divisions. This decision comes as Viasat is integrating the recently acquired Inmarsat business. The acquisition was completed in May.
Despite the layoffs, Viasat will continue to operate globally, with a majority of its employees based in the US and the UK. According to Viasat President Guru Gowrappan, these changes align with the company’s goals of focusing spending on growth opportunities and positioning Viasat for long-term success. He expressed gratitude to the departing colleagues for their contributions to the company’s success.
The layoffs will result in a cost of $45 million for Viasat, which will be incurred primarily in the second half of fiscal year 2024. However, this move is expected to save the company $100 million in annual expenses starting from fiscal year 2025. It will also help Viasat reach its fiscal year 2025 CapEx target of $1.4 billion to $1.5 billion.
In addition to the layoffs, Viasat has been finalizing insurance claims for both the ViaSat-3 and the Inmarsat-6 F2. The latter experienced an anomaly with its power subsystem. Viasat is taking steps to address these issues and ensure the smooth operation of its satellite systems.
Overall, while these layoffs are a difficult decision for Viasat, the company believes that they are necessary to streamline operations, improve profitability, and focus on its most promising growth opportunities.
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