Eutelsat, a European satellite operator, stated that it is going through a critical situation due to the setbacks faced by recently launched satellite and a drop in its earnings. And to cope with the situation and pushing itself to be a profitable company again, Eutelsat is planning for the job cuts.
Eutelsat’s Chief Financial and IT Officer Sandrine Téran stated that by the end of the financial year 2022, the firm aims to save approximately 20–25 million euros with the help of its latest initiative LEAP 2. Since 2016, the firm has started taking strategic steps to kick-start its growth such as shrinking its yearly capital expenses financial plan to 400 million euros—which was earlier 500 million euros—and investment in broadband connectivity.
During the firm’s earnings call, Téran stated, “The latest plan will incorporate numerous measures, such as a worldwide employment freeze in the legacy businesses, economy measures within France, a reduction of circa 100 net count out of France, and freezing compensations for more than 3 Years.” Through its LEAP-2 program, which was announced in July of this year, the company was successful to exceed its primary target of 30 million euros and slashed about 32 million euros from its operating expenditures during the past 3 Years.
While explaining the motive of the LEAP-2 program, Téran stated that to build headway to plow in our connectivity businesses,” whilst maintaining the firm’s earnings before interest, taxes, depreciation and amortization (EBITDA margin) is the key motive of this program.
On a similar note, Eutelsat and Thales Alenia Space announced a deal that focuses on creating a substitute for a geostationary satellite, which will retire in approximately 3 Years. For the construction of Eutelsat-10B—an all-electric satellite with higher capacity than Eutelsat-10A, its predecessor—both the firms have partnered and signed a “letter of agreement.”
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