Viasat Inc., a global communications company, has reached a significant milestone in its integration program after acquiring Inmarsat. As part of its strategy to streamline operations and better serve its customers, Viasat has completed a rationalization of roles in its global business to achieve operational and cost efficiencies. This effort is expected to result in approximately $100 million in annual expense savings, starting primarily in FY2025.
To achieve these savings, Viasat will reduce its global workforce by approximately 800 roles, or about 10%, across different geographies and divisions. Additionally, this reduction will contribute to the company’s capital expenditure target of $1.4 billion to $1.5 billion by FY2025, including capitalized interest. The company estimates it will incur charges of around $45 million to achieve these synergies, mainly in the second half of FY2024.
Guru Gowrappan, president of Viasat, stated that the changes align with the company’s goal to focus spending on its growth opportunities while increasing margins and profitability. He expressed gratitude to departing colleagues for their contributions.
Viasat confirmed that these actions allow the company to focus its investments in space and ground technologies and assets to meet customer needs and achieve growth targets in commercial and government markets. The cost reductions align with the company’s plans to reduce debt, leverage, and generate free cash flow by the first half of CY2025.
Despite the workforce reduction, Viasat will continue to operate globally, with the majority of its employees based in the United States and the UK. More details about these changes are expected to be shared during Viasat’s Q2 earnings report on November 8, 2023.