RigNet said it plans make a significant company restructuring cutting up to 12% of its staff as it looks to streamline its costs during the global decline in oil price.
The company said it will create a single global managed services sales organisation to drive both market share and revenue growth.
Through the restructuring, RigNet has created teams to help drive entry into other markets and deliver additional over-the-top applications to both existing and new managed services customers.
Around $3.5million of savings are expected to be made as well as a restructuring charge of $4.5million in the third quarter of the year for employee severance expenses, facilities costs and related matters.
Steven Pickett, chief executive of RigNet, 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,” said Steven Pickett, RigNet’s CEO and president. “We believe that this action creates the right structure and a properly sized organization to better position us for the future.”
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