TAMPA, Fla. — Viasat said Nov. 2 it is laying off 800 employees representing around 10% of its workforce as the satellite operator streamlines its business after buying Inmarsat.
A source close to the operator said the workforce reduction is spread relatively evenly across its global footprint, with legacy Viasat and Inmarsat seeing a similar percentage of impacted workers.
Carlsbad, California-headquartered Viasat employed roughly 6,200 people in May when it bought Inmarsat of the United Kingdom, which had roughly 1,800 employees at the time of the $6.2 billion deal.
Viasat said the workforce reduction will save $100 million in annual expenses beginning in its fiscal year 2025, which starts April 2024.
Although Viasat expects to take a $45 million hit to rationalize roles across both businesses, the company said the move will help it reach a $1.4 billion to $1.5 billion spending target for fiscal year 2025.
“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 in a news release.
“At the same time, the decision to reduce our workforce is a very difficult one, and not something we take lightly.”
Viasat said the majority of its employees will continue to be located in the United States and United Kingdom following the reduction, with more details to be announced when it reports earnings results Nov. 8.
The workforce reduction comes as Viasat grapples with severe issues on two recently launched geostationary satellites: ViaSat-3 Americas and Inmarsat-6 (I-6) F2.