Viasat Inc. (NASDAQ: VSAT) has revealed plans to cut approximately 800 jobs, representing around 10% of its current workforce. The leading communications satellite company aims to achieve annual savings of $100 million through this measure. The job cuts will be distributed across various business divisions and geographies, coinciding with Viasat’s ongoing integration of Inmarsat, which was successfully acquired on May 31.
Focused Spending on Growth Opportunities
In an effort to prioritize its biggest growth prospects, Viasat’s President, Guru Gowrappan, stresses that the job reductions align with the company’s objectives. The strategic move aims to position Viasat for long-term success and bolster margins and profitability.
As a result of these workforce reductions, Viasat expects to incur charges totaling $45 million. The majority of these charges will be recorded in the latter half of 2024.
While Viasat’s stock indicated an increase of over 1% in premarket trading, it is important to note that the company’s shares have experienced a significant decline of 40.2% over the past three months. In comparison, the broader S&P 500 index has slipped by 6.1% during the same time period.