Chesapeake Energy Plans to Cut 15% of Jobs
September 29 2015 - 5:30PM
Dow Jones News
Chesapeake Energy Corp. said it is reducing its workforce by 15%
to reduce costs to reflect low prices for crude and natural
gas.
In a regulatory filing, the company said it expects to post
third-quarter charges of roughly $55.5 million related to the
move.
Chesapeake, based in Oklahoma City, had about 5,000 employees.
Today 740 of them will be laid off, with about 560 of those
positions coming from the home office in Oklahoma, the company
said.
"As you are fully aware, the current commodity price environment
continues to be a challenge for our industry and for Chesapeake,"
Chief Executive Doug Lawler wrote in an email to employees Tuesday.
"While this was extremely difficult, we are acting decisively and
prudently to enhance the long-term competitiveness and strength of
Chesapeake."
Chesapeake is among the U.S. large energy companies that have
written down the value of their oil fields this year as a rout in
commodities prices has made properties across the country not worth
drilling.
In August, Chesapeake posted a deep loss in the second quarter
as the U.S. shale driller took a $4.02 billion write-down on some
properties following tumbling energy prices.
Amid the swoon in oil prices, Chesapeake has reduced rig
operations and cut capital expenditures after failing to offset the
plunge with higher production.
Erin Ailworth contributed to this article.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 29, 2015 17:15 ET (21:15 GMT)
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