RigNet Inc. announced a restructuring plan on July 15 that includes cutting about 12% of its workforce. The restructuring, which is expected to be complete by the end of 2016, will include a flattening of the organization, a streamlining of decision-making and, as a result, a more efficient business model. Also in the SEC filing, RigNet notes that it plans to terminate its headquarters lease at 1880 S. Dairy Ashford in Houston early. The lease was expected to last through Aug. 31, 2018, but RigNet is electing to terminate it as of Feb. 28, 2017. The company was not immediately available to provide additional details. RigNet plans to take a restructuring charge of $4.5 million in the third quarter of 2016 for employee severance expenses, facilities costs and related matters. The restructuring then is expected to save RigNet $3.5 million annually due to personnel, facility and other reductions.

As part of the plan, the company is eliminating its chief technology officer role, effective July 15. CFO Charles Schneider will now also be responsible for RigNet's information technology. Morten Hansen, who had been serving as senior vice president and chief technology officer, will stay in a consulting role with RigNet to help with the transition for three months or until it's complete.