HomeMy WebLinkAbout2024-07-18; Viasat's Presence in Carlsbad (Districts - All); Rocha, LauraTo th! m!mll~rs •f t he:
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Coun cil Me morandum
July 18, 2024
To:
From:
Via:
Subject:
Honorable Mayor Blackburn and Members of the City Council
Laura Rocha, Deputy City Manager, Administrative Services
Matt Sanford, Economic Development Manager
Geoff Patnoe, Assistant City Manager ~
Viasat's Presence in Carlsbad (Districts -All )
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Carlsbad
Memo ID# 2024051
This memorandum provides information regarding Viasat's presence in Carlsbad.
Background
Since its founding in 1986, Viasat has become a cornerstone of Carlsbad's economic landscape,
evolving from a small startup into a global communications company. Viasat is one of the city's
largest employers and has put Carlsbad on the map as a place for innovation firms. The
company's commitment to innovation and excellence in satellite and wireless communication
technologies has garnered numerous accolades and solidified its reputation as a leader in t he
industry. This growth has contributed to Carlsbad's reputation as a hub for technology and
innovation and fueled economic growth.
Discussion
Recently, t he company has experienced several notable challenges and events that have had an
impact on its presence in Carlsbad.
In October 2022, Viasat sold a portion of the business to L3 Harris, a large defense contractor.
The move included 450 employees and two buildings in Carlsbad. Originally L3 Harris expressed
a commitment to keeping a presence in Carlsbad, but ultimately reversed course, shuttering
their Carlsbad site and relocating or laying off employees.
In early 2023, Viasat acquired lnmarsat. In August 2023, the lnmarsat-6 F2 satellite suffered a
power subsystem anomaly, which yielded a loss of that satellite's functionality.
The much-anticipated Viasat-3 satellite launched on May 1, 2023, but in February 2024, the
company announced the satellite experienced a mechanical deployment issue of its reflector
array, limiting the throughput capacity of the satellite to just 10% of the anticipated service.
Economic Development Department
1635 Faraday Avenue I Carlsbad, CA 92008 I 442-339-5987 t
Council Memo -Viasat's Presence in Carlsbad (Districts -All)
July 18, 2024
Page 2
The unanticipated challenges with the two satellites, along with the streamlining of operations
post-lnmarsat acquisition yielded a reduction in force in November 2023, seeing the loss of 800
employees worldwide, including 160 positions in Carlsbad.
Like many employers, Viasat has embraced a hybrid and remote-work policy coming out of the
COVID-19 pandemic. The strategy has yielded good productivity from employees and has
allowed the company to hire candidates in areas outside of Carlsbad and other sites. However,
the approach has yielded lower occupancy at the company's recently expanded/renovated
Carlsbad campus. Between the challenges the company experienced and the lower utilization
of the campus by Carlsbad-based employees, Viasat has excess and under-utilized space.
Viasat is now further consolidating operations. The company just completed a voluntary layoff
of staff and is now vacating two buildings that were part of its Carlsbad campus, 2502 and 2508
Gateway Drive. While the move aligns with recent staffing patterns, a reduction in space is an
indicator the company does not plan to regain the capacity it once had.
According to the latest numbers reported by the company, Viasat still employs more than 2,500
people in Carlsbad, many of whom work remotely. The company is also experiencing gradual
downsizing in both scope and employment in Carlsbad, raising concerns about long-term
operations.
Next steps
Staff are working with several regional partners to better understand the underlying factors
affecting the company's presence in Carlsbad and to determine whether there are strategic
interventions that could help alleviate certain challenges and reverse current trends.
cc: Scott Chadwick, City Manager
Cindie McMahon, City Attorney
Gary Barbaria, Deputy City Manager, Community Services
Jeff Murphy, Community Development Director
Zach Korach, Finance Director
Kristina Ray, Communications & Engagement Director
R~chel Maltz, Economic Development Program Manager