Chesapeake Energy Corporation (NYSE:CHK) slashed 800 jobs on Tuesday, as a part of its restructuring strategy, according to an email sent by the company’s CEO Doug Lawler to employees. Chesapeake, which employees around 12,000 people, has been in the process of laying off for quite some time now.
Starting in early 2013, the company has laid off around 10 percent of its workforce, or around 1,200 employees.
Chesapeake restructuring process completed with the layoffs
In his mail Lawler wrote, “By scaling E&P support services, reducing management layers, and aligning resources with a sharpened focus on accountability and efficiency, we have created a business built to deliver a sustainable and profitable future.”
Employees from different departments like land, IT, human resources, and legal, facilities, finance, accounting and A&D were asked to stand in a queue outside the conference room and were given notice that they were being laid off rather than holding the exercise private.
Chesapeake Energy Corporation (NYSE:CHK) started it restructuring process in August, and was suppose to complete it on November 1. However, the process came to an end sooner than that with the mass layoff on Tuesday.
Lawler said that the company expresses its regard for every employee affected by workforce reduction. Lawler said that it was important to take careful, diligent steps to evaluate the organization and to ensure that every employee exiting was treated with dignity and respect.
Chesapeake Energy Corporation (NYSE:CHK) has given eligible employees a severance package that consists of three month’s salary, a hike in equity and a lump sum COBRA payment. Also, the company offered outplacement services.
Troublesome past few months
In the email, Lawler said that the company has been going through many hurdles over the last few months. To end the struggle, management has been trying to implement its strategy of Financial Discipline, Profitable & Efficient Growth from captured resources. Through the execution of these strategies, Chesapeake Energy Corporation (NYSE:CHK) will bring sustainable growth in the organization and create a concrete base to achieve the leadership role in the E&P business.
Commissioner Doug McLinko (R- Bradford) raised his concern over the layoffs, as most of its wells are in Bradford County. In August, community staff of Chesapeake Energy Corporation (NYSE:CHK) were laid off. McLinko also said that as the company has laid off all its public relations employees, there cannot be any contact established with the company.