Chesapeake Energy Lays Off 13% Of Workforce
OKLAHOMA CITY - News 9 has learned that another round of layoffs is happening Tuesday morning at Chesapeake Energy in Oklahoma City.
In an email sent to employees on Tuesday, company representatives announced a 13-percent layoff. CEO Doug Lawler wrote the following:
By now you are aware we have undergone a reduction in Chesapeake’s workforce this morning. This action impacted approximately 13% of our employees across all functions of the company, primarily on our Oklahoma City campus. The decision to reduce headcount did not come easily for the leadership team. Dedicated, value-driven, hard-working people have been affected. You have my personal assurance that we are treating these employees fairly, respectfully, and with considerable effort to assist them with their personal and career transition.
Over the last couple years, we have divested approximately 25% 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 transition arrangements have now come to an end, and we continue to see increased efficiencies across the company, we needed to respond accordingly.
Chesapeake has proven its resilience and strength and we must continue to structure and position the company for greater success. As you have heard me say repeatedly, transforming a company requires discipline, tough decisions, great talent, and a shared vision and culture. I will be hosting a Town Hall in the coming weeks to discuss our progress and share my confidence in what we are accomplishing – working together as One Chesapeake.
Thank you for your commitment and dedication to our company.
The total number of people let go on Tuesday is about 400, 330 of whom were based in Chesapeake's Oklahoma City offices, a company representative confirmed with News 9. This brings the company's total employment down to about 2,900 people, 1,800 of whom are in Oklahoma City. The company representative added that field employees across all of Chesapeake's operating areas were impacted.
Chesapeake has field operations in Oklahoma (Mid-Continent), Texas (Eagle Ford Shale), Louisiana (Haynesville Shale), Wyoming (Powder River Basin), Ohio (Utica Shale), and Pennsylvania (Marcellus Shale).
This is a developing story. Stay with News 9 and News9.com for updates as information becomes available.