Chesapeake Energy to Lay Off Hundreds of Employees

- February 2nd, 2018

Chesapeake Energy is set to lay off 13 percent of its workforce in an attempt to relieve itself of debt and work towards profitability.

Chesapeake Energy (NYSE:CHK) is set to lay off approximately 400 employees in an attempt to relieve debt and overhaul its business.

On Tuesday (January 30), the company, which stood at 3,247 people as of September, sent a letter to employees informing them of its decision to release 13 percent of its workforce.

According to Chesapeake, the majority of those cuts, which are the result of asset sales that the company has made in recent years, will come from its Oklahoma City campus.

Learn to invest in the oil & gas industry

See our report for valuable information

In the letter, Chesapeake Energy CEO Doug Lawler stated that Chesapeake did not initially cut staff after selling off assets because it had entered into specific arrangements with buyers, and they required workers to remain in their positions.

With those arrangements coming to a close, the company must now respond accordingly. “The decision to reduce headcount did not come easily for the leadership team. Dedicated, value-driven, hard-working people have been affected,” he said.

In recent years, the company has sold off approximately 25 percent of its wells, which Lawler said was an effort to “[r]educe debt, enhance margins, and work within our cash flow.”

This isn’t the first time that Chesapeake has made substantial cutbacks. In 2015, Chesapeake let go of  approximately 750 of its employees, citing low commodity pricing as the reason.

Chesapeake’s share price was last down 3.9 percent on Friday (February 2), and the stock has fallen about 43 percent over the last year.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.

Ready to profit from the energy market in 2019?

Read your new report to learn about the oil market and the uranium boom

Get the latest Gas Investing stock information

Get the latest information about companies associated with Gas Investing Delivered directly to your inbox.

Gas Investing

Select All
Select None

By selecting company or companies above, you are giving consent to receive communication from those companies using the contact information you provide. And remember you can unsubscribe at any time.

Leave a Reply

Your email address will not be published. Required fields are marked *