Chesapeake Energy announced it laid off 13%, or 400, of its workforce at its Oklahoma City headquarters, which is in addition to the 19%, or 750, laid off in 2015.
Chesapeake CEO Doug Lawler said the job cuts were the result of asset sales that the company has made in recent years. He explained that Chesapeake did not initially cut staff after selling the assets because it had entered into transition arrangements with buyers, which required workers to remain in their positions.
“Transition services agreements with buyers of certain assets caused us to not make corresponding staffing changes in Oklahoma City," Lawler said in a memo to employees. "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."
The company has sold off about 25 percent of its wells in recent years in order to shrink its debt load, improve profit margins and operate its business within the confines of its cash flow, Lawler noted in his letter.
