RigNet to cut 12pct of workforce

RigNet, Inc., a global provider of communications solutions for the international offshore oil and gas industry, on Friday announced restructuring plans which include job cuts.

The company said the plan creates a single global managed services sales organization to drive both market share and revenue growth.

RigNet said that the effects of the restructuring include a “flattening of the organization, a streamlining of decision-making and, as a result, a more efficient business model.”

The company said it expects to make annualized savings from personnel, facility and other reductions of approximately $3.5 million after taking a restructuring charge of approximately $4.5 million in the third quarter of 2016 for employee severance expenses, facilities costs and related matters. Expected to be substantially completed by December 31, 2016, the plan involves a reduction across the organization of approximately 12% of the employee base.

Steven Pickett , RigNet’s CEO and president said: “By implementing this new organizational structure, the company will reduce spending and both flatten and streamline the organization to provide best-in-class customer experiences across the world. We will be better positioned to generate revenues from over-the-top applications that can help our customers drive efficiency in their businesses. And, through more focused efforts, we will be better positioned to grow revenue in new vertical markets.”

“We believe that this action creates the right structure and a properly sized organization to better position us for the future,” Pickett concluded.

As of December 31, 2015, RigNet had approximately 546 full-time employees consisting of 61 employees in sales and marketing, 87 employees in finance and administration, 380 employees in operations and technical support and 18 employees in management.