Viasat Layoffs: Why 800 Employees Are Facing Job Cuts

Viasat is set to lay off 800 employees, which accounts for roughly 10% of its workforce.

viasat layoffs
viasat layoffs

Viasat announced that it is laying off 800 employees. The decision comes as Viasat is in the process of integrating the Inmarsat business following its acquisition. The company revealed that the layoffs would impact various geographic locations and divisions within the organization.

Viasat helps connect people all over the world by providing high-speed internet and communication services through satellites

These job cuts follow Viasat’s successful acquisition of Inmarsat back in May. Despite the layoffs, Viasat will maintain its global operations, with the majority of its workforce still based in the United States and the United Kingdom.

Viasat anticipates that this workforce reduction will result in substantial cost savings, amounting to approximately $100 million in annual expenses, starting in the fiscal year 2025. Additionally, this move is expected to assist the company in achieving its fiscal year 2025 Capital Expenditure (CapEx) target, which ranges from $1.4 billion to $1.5 billion. The cost associated with these layoffs is estimated at $45 million, primarily to be incurred in the latter half of the fiscal year 2024.

Guru Gowrappan, the President of Viasat, commented on the decision, stating, “The changes we are announcing today align with our objectives to direct our resources towards our most promising growth opportunities. This strategic move positions Viasat for long-term success, allowing us to expand our margins and boost profitability. However, the decision to reduce our workforce is a 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 played a crucial role in Viasat’s success story.”

Meanwhile, Viasat is also grappling with technical challenges related to its flagship ViaSat-3 satellite, which is expected to deliver only a fraction of its originally planned capacity. Despite these issues, the company has stated that it will not be ordering an additional satellite. The leadership at Viasat remains confident that the acquisition of Inmarsat will allow them to fulfill their customer commitments with their existing fleet.

In recent news, Viasat confirmed that it is in the final stages of processing insurance claims for both ViaSat-3 and the Inmarsat-6 F2, which experienced 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 company aims to resolve both claims before the year’s end.

Gerard Thompson
Gerard Thompson

Gerard Thompson, a seasoned tech industry worker understands the struggles of facing layoffs firsthand. Having navigated the uncertain and daunting world of job loss himself. Gerard is the founder of JustLayoffs.com

Leave a Reply

Your email address will not be published. Required fields are marked *