Viasat to cut 800 jobs globally post Inmarsat acquisition

US-based satellite communications (Satcom) company Viasat is cutting 800 jobs – or about 10% of its total headcount globally – following its acquisition of Britain’s Inmarsat.

Viasat in a recent statement said this is part of an ongoing strategy to streamline operations and to better serve its growing customer base. It described the move as a “rationalization of roles in its global business, to achieve both operational and cost efficiencies”.

“As a result of the role rationalization, Viasat will reduce its global workforce by approximately 800 roles, or about 10%, spread across the business in terms of geographies and divisions,” Viasat said.

This move is expected to result in annualised run-rate operating expense cost savings of approximately $100 million beginning primarily in FY2025. Separately, this reduction will also contribute to the attainment of the company’s FY2025 capital expenditure target of $1.4 billion to $1.5 billion, including capitalised interest, Viasat said.

It added that the company will incur charges of approximately $45 million to achieve these synergies, which will be incurred predominantly in the second half of FY2024.

“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.

Viasat continues to operate with a global footprint, with a majority of its employees continuing to be located in the United States and the UK.

Viasat acquired Inmarsat in May this year for $7.1 billion.

This enables the companies to combine spectrum, satellite, and terrestrial assets, including 19 satellites in space spanning Ka-, L- and S- bands, Viasat and Inmarsat had said in a joint statement then. These complementary assets are expected to deliver connectivity and key safety services across maritime, aviation, government and consumer markets.