Chesapeake slashes fifteen% of workforce

U.S. frackers come to feel the pinch of low oil prices Chesapeake Strength is aggressively reducing jobs as it wrestles with low-cost oil and natural gas costs.

The energy exploration firm stated on Tuesday that it plans to slash about fifteen% of its workforce, or 740 personnel. Most of the task cuts will consider place in Oklahoma City, exactly where Chesapeake ( CHK ) is primarily based.

Chesapeake particularly cited recent oil and organic fuel charges as the purpose for the cuts.

“We must continue being centered on creating an enduring, resilient and lucrative business — one particular that can flourish in any commodity cost atmosphere,” explained Doug Lawler, Chesapeake’s CEO, in a memo to staff.

The value-reducing moves will cause Chesapeake to take a one particular-time charge of about $ fifty five.five million in the 3rd quarter connected to employer payroll taxes.

Whilst it’s been excellent for most American motorists on the highway, the power industry has been slammed by the crash in oil charges. Crude oil costs have fallen from above $ a hundred a barrel in June 2014 to just $ forty five nowadays. Chesapeake’s shares have plunged seventy one% in excess of the past 12 months.

In the very same time horizon, U.S. firms have reduce more than 86,000 work directly attributable to falling oil charges , in accordance to outplacement agency Challenger, Grey &amp Xmas. Vitality organizations Schlumberger ( SLB ) , Baker Hughes ( BHI ) and Halliburton ( HAL ) are among the companies to layoff the most staff this yr.