Spok Holdings Inc. (NASDAQ: SPOK) announced a strategic realignment plan that includes reducing its workforce by approximately 10% and cutting operating expenses to generate more than $6 million in annual cost savings.

The healthcare communications company said the restructuring will allow it to focus resources on its Care Connect Suite and artificial intelligence initiatives while maintaining its quarterly dividend. The plan involves consolidating executive leadership, with Chief Operating Officer Michael Wallace assuming additional responsibilities as chief financial officer.

"While any reduction of our leadership team and employee base is a difficult decision, shifting customer preferences has required us to find new ways of driving productivity and efficiency," said Vincent D. Kelly, president and chief executive officer.

Spok expects to incur restructuring charges of approximately $1.6 to $2.0 million, primarily in the second and third quarters of 2026. The charges will mainly consist of cash expenditures for employee benefits and severance payments, with the restructuring expected to be substantially complete by the third quarter.

The company plans to prioritize its Care Connect Suite, which includes Spok Console, Spok Messenger, and Spok Mobile, along with AI enhancements and its wireless service offering. Wallace, who previously served as Spok's chief financial officer from 2017 to 2022, will focus on creating additional operational efficiencies.

Spok, headquartered in Plano, Texas, provides healthcare communication solutions and reports that customers send over 70 million messages monthly through its platforms. The company said it will exclude restructuring charges from its non-GAAP financial measures.