Reorganizing always brings a fresh perspective, and it's a good way to see what works best for the company at hand, but there's usually a downside as well.
RigNet, Inc. (NASDAQ:RNET), provider of digital technology solutions, is launching a corporate restructuring plan. With these actions the company will enjoy a more streamlined plan that creates a single global managed services sales organization to drive both market share and revenue growth and enjoy financial savings in the process. The plan is twofold:
- to create more common processes
- more consistent customer experiences across their global footprint
The plan creates a single global managed services sales organization to drive both market share and revenue growth. Through this restructuring, RigNet has created dedicated teams to drive entry into new vertical markets and to deliver additional over-the-top applications to both existing and new managed services customers.
RigNet 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. By December 31, 2016 RigNet's plan is expected to be almost completed, with the final toll of a reduction of approximately 12 percent of the employee base.
Steven Pickett, RigNet's CEO and president stated, "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. We believe that this action creates the right structure and a properly sized organization to better position us for the future.”