Viasat to cut 800 jobs to meet $100 million annual savings target

Satellite communications company, Viasat has it will reduce its workforce by 10% with 800 jobs to be cut to meet its target of $100 million annual savings beginning in FY2025, with plans to reduce debt and leverage and generate free cash flow.

The company noted the staff cuts will also contribute to meet its FY2025 capital expenditure target of $1.4 billion to $1.5 billion, including capitalizsd interest. The company expects it will incur charges of approximately $45 million following staff lay offs, predominantly in the second half of FY2024.

It comes after the recent acquisition of Inmarsat in $7.3bn deal which is yet to be completed. The EC cleared the merger in May, after Viasat received approval from UK’s Competition & Markets Authority and the US Federal Communications Commission.

Viasat said the move will enable the company to focus ongoing investments in space and ground technologies and assets.

“Since we completed the acquisition of Inmarsat, our focus has been on accelerating our leading role in global mobile satellite communications by converging our technologies and organizational structures to deliver enhanced products and services to our customers. We will continue working to better unify our go-to-market approach, and maximize operational and capital productivity,” said Guru Gowrappan, president of Viasat.

He added, ““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,” said Guru. “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.”