We knew this on our site here 12 hours ahead of them - It's pathetic how news is covering this, they are supporting executives - layoffs.com is my only source of info now, I do not trust anybody
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Chesapeake Energy Corp. on Tuesday laid off 740 employees, or about 15 percent of its workforce, as the year-long oil price slump continues to weigh on the state's largest industry.
The cuts include about 550 people in Oklahoma City, or about 19 percent of the workforce at the company's headquarters.
"The commodity price environment is extremely challenging for our entire industry," CEO Doug Lawler said Tuesday in an exclusive interview with The Oklahoman. "Chesapeake today has had to take some steps towards improving our financial position to meet these challenging times. This is something we are not happy about."
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Affected employees will receive 13 to 52 weeks of pay, depending on their age, pay level and years of service with the company. They also will receive continuing health insurance and job placement help.
Recently, the company has laid off about 60 people, Lawler said.
"These are individuals who have contributed substantially to the success of the company, but the current commodity price environment and stability of the company requires we take action," Lawler said.
After Tuesday's cuts, Chesapeake has about 4,000 employees nationwide, including about 2,500 in Oklahoma City.
"This company will be an enduring enterprise," Lawler said. "We are committed to the community, and we are committed to Oklahoma. But we have to react and respond to be as competitive as possible."
Like most oil and natural gas companies, Chesapeake has slashed its drilling budget and spent most of the past year looking for other ways to reduce costs.In October 2013, Chesapeake laid off about 900 employees.
"We have been looking at every part of our business throughout the year. We've made changes at virtually every part of the company," Lawler said. "It comes down to positioning us for 2016 in anticipation that prices could be very low for a long period of time. The company has to be proactive and respond to that."
Some of the cost savings have been through asset sales. Chesapeake last year sold $5.4 billion in assets. In August, it sold oil and natural gas producing assets in western Oklahoma in a deal worth $840 million. Lawler said the company will continue to consider asset sales if purchase offers are reasonable.
"We are not dependent on asset sales," Lawler said. "We are not desperate for asset sales. We are doing everything we can to strengthen the financial position of the company."