HOUSTON, Dec. 14, 2015 (GLOBE NEWSWIRE) -- RigNet, Inc. (NASDAQ:RNET), a leading global provider of digital technology solutions to the oil and gas industry, today announced a reduction of 21 personnel to reduce costs in line with lower activity levels in the upstream energy market.
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 $0.7 million in the fourth quarter of 2015 for employee severance expenses and related matters. Expected to be substantially completed by January 31, 2016, the plan involves a reduction across the organization of approximately 4% of the employee base.
"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. We are also careful to maintain superior customer service levels regardless of market conditions," said Mark Slaughter, RigNet's CEO and president. "We believe that this action appropriately balances meeting today's market environment while continuing to position us for growth."
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.