Chesapeake Energy slashes 15% of workforce
Chesapeake Energy Corp., the natural gas explorer selling assets to raise cash, plans to cut 15 percent of its workforce to cope with a drop in commodity prices.
The Oklahoma City company will lay off 740 people and take a $55.5 million one-time charge in the third quarter related to employer payroll taxes, according to a filing Tuesday.
“While this was extremely difficult, we are acting decisively and prudently to enhance the long-term competitiveness and strength of Chesapeake,” CEO Doug Lawler said Tuesday in an internal memo sent to Bloomberg News. “Over the past year, we have taken significant actions in response to the low commodity prices by reducing our costs and decreasing our capital spending.”
From the combination of spinoffs, asset sales and other cuts, the company’s workforce fell by almost half last year to 5,500, according to data compiled by Bloomberg.
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