RigNet to Restructure, Expand Beyond Oil and Gas Market
[Via Satellite 07-15-2016] RigNet is pursuing a corporate restructuring plan to create a single global managed services sales organization to drive both market share and revenue growth, the company announced today. Through this restructuring, RigNet has created dedicated teams to drive entry into new vertical markets outside of the currently pressured oil and gas market.
RigNet anticipates the effects of the restructuring will include a flattening of the organization, a streamlining of decision-making and, as a result, a more efficient business model. In connection with this action, the company expects to achieve 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.
RigNet expects the restructuring to be substantially completed by Dec. 31. The plan involves a reduction across the organization of approximately 12 percent of the employee base.
“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 new CEO and president. “We believe that this action creates the right structure and a properly sized organization to better position us for the future.”