Chesapeake Energy Corp. Cuts Hundreds of Employees
U.S.-based natural gas producer Chesapeake Energy laid off 13 percent of its staff, or about 400 workers, across all functions of its company, the company confirmed to Rigzone.
Layoffs underway right now at Chesapeake Energy. Some notified via email. Waiting to hear total number.— Wendy Suares (@wsuares) January 30, 2018
The majority of the affected workers (330) are located in Oklahoma City. On the morning of Jan. 30, Chesapeake Energy CEO Doug Lawler sent an email to employees notifying them of the layoffs.
An excerpt from the email states, “over the last couple of years, we have divested approximately 25 percent of our wells, primarily from non-core areas, as a key part of our strategy to reduce debt, enhance margins and work within our cash flow. While those divestitures resulted in headcount reductions in the field, transition services agreements with buyers of certain assets caused us to not make corresponding staffing changes in Oklahoma City. As those tradition arrangements have now come to an end, and we continue to see increased efficiencies across the company, we needed to respond accordingly.”
Chesapeake had previously cut its workforce by 15 percent, or 740 employees in September 2015 due to weak commodity prices.
The company had a total of 3,247 employees as of September 1, 2017, according to its corporate fact sheet.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Shale Companies Sink On Investor Disappointment, Hedging Losses (Aug 01)
- Chesapeake to Sell Utica Shale for $2B (Jul 26)
- Chesapeake Says To Raise 2018 Output On Lower Spending, Shares Jump (Feb 22)