RigNet Shrinks Employee Base Due to Weak Energy Market
[Via Satellite 12-15-2015] RigNet has announced a reduction of 21 personnel during the company’s fourth quarter. The company, which provides digital technology solutions to the oil and gas industry, cited the need to curtail costs in line with lower activity levels in the upstream energy market.
“As RigNet has seen the impact of reduced oil and gas industry activity levels, we have reduced spending across the organization. We closely monitor market activity so we can align our capabilities with the market,” said Mark Slaughter, RigNet’s president and CEO.
In connection with this action, RigNet expects to achieve annualized savings from personnel reductions of approximately $2.5 million after taking a restructuring charge of approximately $700,000 in the fourth quarter of 2015 for employee severance expenses and related matters. The plan involves a reduction across the organization of approximately 4 percent of the employee base, and should be substantially completed by Jan. 31, 2016.
“We believe that this action appropriately balances meeting today’s market environment while continuing to position us for growth,” Slaughter added.