Satellite communication heavyweight Viasat has communicated its strategy to trim down its workforce by around 10%, implying the dismissal of approximately 800 roles. This step follows Viasat’s acquisition by Inmarsat, setting the company back by a staggering $6.2 billion, initiating a large-scale reorganization poised to optimize its operations.
Viasat envisions robust financial outcomes from this workforce reduction, projecting a year-on-year cost-saving of a $100 million starting from the fiscal year of 2025. Despite these promising figures, the firm acknowledges the costs associated with these labor adjustments expected to reach around $45 million, a necessary expenditure for seamless integration.
Viasat’s president, Guru Gowrappan, validated the downsizing, indicating that it fell in line with their agressive strategies. Gowrappan stated that these cuts represent an economy move towards capitalizing “our biggest growth opportunities and position Viasat for long-term success”. Their end-goal is expanding profitability while maintaining a sharp focus on spending.
Inmarsat anticipates that a comprehensive integration of Viasat’s unique assets will significantly augment pace and broaden the horizons for innovation in the satellite connectivity industry. This tech upgrade will lead to delivering enriched capabilities to clientele, addressing persisting issues of speed, flexibility, reliability, coverage, and security.
Gowrappan highlighted their commitment, stating: “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.”
There is a steadfast focus on becoming the indisputable leader within the realm of satellite communications, zeroing in on catering the finest products and services to their consumers, he added. Gowrappan believes that the firm can create much deeper value for its stakeholders by combining the strengths of each company, ensuring they tirelessly meet their synergy commitments.
Viasat plans to release more encompassing details on this move during its Q2 earnings call slated for November 8. The decision to resort to rigorous cost-cutting measures seems understandable, especially in light of the technical glitches witnessed on their recently launched satellites, the ViaSat-3 and Inmarsat (1-6) F2. These issues have undoubtedly lent a hefty blow to their financial standing.
In other news, Colt acquires Lumen EMEA for $1.8 billion, and the Port of Tyne switches on 4G/5G private network. Spanish government is considering a stake in Telefónica as a countermeasure against STC’s influence. For those keen on receiving daily updates on the latest in UK telecoms, sign up for Total Telecom’s daily newsletter.
