HOUSTON, July 13, 2015 (GLOBE NEWSWIRE) -- RigNet, Inc. (NASDAQ:RNET), a leading global provider of digital technology solutions to the oil and gas industry, today announced a cost restructuring plan that reduces costs in line with activity levels in the upstream energy market while continuing sustained investment that strengthens capabilities and positions the Company for the future.
In connection with this plan, RigNet expects to achieve annualized savings from personnel reductions of $4.5 million after taking a restructuring charge of approximately $1.0 million in the third quarter of 2015 for employee severance expenses and related matters. Expected to be substantially completed by July 31, 2015, the plan involves a reduction across the organization of 47 employees, which is just under 8% of the employee base. In addition, RigNet is further addressing its cost structure with specific measures including targeted supply chain initiatives and certain delayed hiring plans.
"As RigNet gets better visibility into oil and gas industry activity levels, we see additional opportunities to implement internal operational efficiencies and process improvements to enable cost-effective solutions for our customers in a challenging macro environment. The steps we are taking now will help ensure we maintain our superior customer service levels and allow us to maintain needed long-term investments in the business,” said Mark Slaughter, RigNet’s CEO and president. “We believe that this cost restructuring plan strikes the right balance between matching the Company with today’s market environment while continuing to build for the future.”
About RigNet
RigNet (NASDAQ:RNET) is a leading global provider of digital technology solutions to the oil and gas industry, focusing on serving offshore and onshore drilling rigs, energy production facilities and energy maritime vessels. RigNet provides solutions ranging from fully-managed voice and data networks to more advanced applications that include video conferencing and real-time data services to over 1,100 remote sites in fifty countries on six continents, effectively spanning the drilling and production industry. RigNet is based in Houston, Texas. For more information, please visit www.rig.net. RigNet is a registered trademark of RigNet, Inc.