Oklahoma City-based petroleum company Chesapeake Energy Corporation has announced its recent decision to layoff hundreds of employees.
The company will dismiss nearly 13% of its workforce. According to a spokesperson, Chesapeake is burdened with debt and will cut down 400 positions in the company.
Chesapeake Chief Executive Officer Doug Lawler’s letter to employees reads “This action impacted approximately 13% of our employees across all functions of the company, primarily on our Oklahoma City campus.”
In an effort to reduce the company’s debt load 25% of wells were sold off in recent years, Lawler writes.
However, the layoff was essential for Chesapeake Energy’s transition. “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,” he explains.
The company stocks have fallen 43% last year; and its shares were down 5.4% on Tuesday.