Pauls Valley, OK, Pauls Valley Democrat

Business

October 11, 2013

Chesapeake lays off 640 workers in Oklahoma City

OKLAHOMA CITY — Chesapeake Energy Corp. said Tuesday it is laying off 800 workers across the oil and natural gas exploration and production company, including 640 at its Oklahoma City headquarters.

The layoffs were announced in a letter that CEO Doug Lawler sent to employees. In it, he said the corporate restructuring process has made Chesapeake "poised to grow for decades to come."

"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," Lawler said.

Chesapeake spokesman Brent Gooden said the company still employs 3,500 people at its corporate headquarters and 6,000 across Oklahoma. Chesapeake still employs a total of about 11,000 people despite having about 1,200 leave the company since the start of 2013.

The layoffs are the latest changes in what has been a turbulent year for the company. In January, it announced that former CEO and company founder Aubrey McClendon would resign on April 1 over what Chesapeake officials called "philosophical differences." McClendon, who founded Chesapeake in 1989, was stripped of his position as chairman of the company's board in May 2012.

Senior vice presidents Tom Price and Henry Hood left the company one month after McClendon's departure. In August, the company announced that four other top executives — executive vice presidents Steve Dixon and Jeff Fisher, and senior vice presidents Steve Miller and Martha Burger — also had left the company as part of its reorganization effort. Dixon also served as chief operating officer.

Last month, Chesapeake announced the layoffs of 86 people in 11 different departments.

In his letter to employees, Lawler said the workforce reduction completes a reorganization process he announced after taking over as CEO in June.

"The past few months have been very challenging as we have evaluated the competitiveness of the company," Lawler said. "The organizational restructuring targeted to be complete by Nov. 1 has concluded, and the initial transformation work is finished."

He said the layoffs occurred in various divisions including operations, technology, human resources, the legal division and finance and accounting. Eligible employees will receive a severance package that includes three months' pay, a lump sum payment toward health benefits and outplacement services.

"We will honor our core values and work diligently to execute our strategy," Lawler said. "We are known for being a great place to work, and with your support and commitment, we will also be a great business and a great investment."

McClendon built Chesapeake into the nation's second largest producer of natural gas by aggressively acquiring drilling rights on land throughout the country. But when natural gas prices slumped to decade lows in early 2012, the value of those rights and revenue from gas produced from the land plummeted.

That put Chesapeake in a financial bind that it has been trying to free itself from by selling drilling rights to other oil and gas companies. It also exposed some perks that McClendon had arranged, including the right to invest personally in all of the company's wells.

Internal investigations into McClendon's activities turned up no improper conduct.

Chesapeake shares closed at $26.05 Tuesday, down 22 cents.

 

1
Text Only
Business
  • Tribal ag program brings farm to casino

    The Quapaw Tribe has started an agriculture program that is supplying locally grown products for its casino restaurant.

    May 12, 2014

  • Charities helping residents after wildfire

    Local charities are on the scene to help Logan County residents sift through the ashes after wildfires swept through the rural area near Guthrie.

    May 8, 2014

  • ALDI Norman store opens ALDI opens Norman store on West Main Street

    A light rain didn’t deter dozens of shoppers who showed up to help open the ALDI store at 2440 W. Main Street in Norman early Thursday.

    May 8, 2014 1 Photo

  • Lebanese Festival planned for two days

    Food, music, dance, culture and traditional home-cooked Lebanese food once again comes together in Norman in the form of Middle Eastern hospitality.

    April 24, 2014

  • Senators accuse GM of covering up defective switch

     Members of a Senate subcommittee accused General Motors of trying to cover up problems with an ignition switch that is now tied to 13 deaths, and pressed CEO Mary Barra to commit to punishing anyone involved.

    April 2, 2014

  • Bethesda 1 University of Okla. students paint murals, brighten up nonprofit

    The harsh, cold, metal door slipped away as green, then blue, turned into a lush, green field with a winding path and a group of University of Oklahoma undergraduate students painted murals Monday at Bethesda Inc., a local agency that specializes in sexual abuse treatment and prevention for children and adolescents.

    March 25, 2014 2 Photos

  • Fly-tying Frenzy at Sam Noble Museum

    The Sam Noble Oklahoma Museum of Natural History will offer Fly-Tying Frenzy, an adult fly-tying workshop, from 8 to 11 a.m. for beginners and from 1 to 4 p.m. for intermediate and advanced participants April 5.

    March 12, 2014

  • JC_GE BUILDING.jpg Industry giants represented at Oak Tree

    Two corporate leaders discussed their company’s respective impact of business expansion on the local economy Thursday at the Edmond Chamber of Commerce Membership Luncheon.

    February 28, 2014 2 Photos

  • Cherokee Nation raising minimum rage

    The Cherokee Nation, one of the largest Native American tribes in the country, is raising its minimum wage by 50 cents, Chief Bill John Baker announced Monday.

    February 25, 2014

  • Moore City Council denies zoning change request

    Residents protesting a requested zoning change to allow apartments to be built in an area devastated by the May 20 tornado filled Moore City Hall on Tuesday night, then applauded when the Moore City Council denied the zoning change request unanimously.

    February 19, 2014

Business Marquee

e-Edition
  • How You Want It When You Want It Today's Pauls Valley Democrat

    Now you can view and download the Democrat right to your desktop on the day the paper is published. Click here to get more information on the Democrat's e-Edition.

     

    CLICK HERE TO ACCESS THE E-EDITION SITE

     

    ATTENTION CURRENT DEMOCRAT SUBSCRIBERS TO START an e-EDITION

    e-mail request to sjohnson@pvdemocrat.com

    April 20, 2011 1 Photo 1 Link

AP Video
Arizona Prison Chief: Execution Wasn't Botched Calif. Police Investigate Peacock Shooting Death Raw: Protesters, Soldiers Clash in West Bank Police: Doctor Who Shot Gunman 'Saved Lives' 'Modern Family' Star on Gay Athletes Coming Out MN Twins Debut Beer Vending Machine DA: Pa. Doctor Fired Back at Hospital Gunman Raw: Iowa Police Dash Cam Shows Wild Chase Obama Seeks Limits on US Company Mergers Abroad Large Family to Share NJ Lottery Winnings U.S. Flights to Israel Resume After Ban Lifted Official: Air Algerie Flight 'probably Crashed' TSA Administrator on Politics and Flight Bans Raw: National Guard Helps Battle WA Wildfires Raw: Ukraine's Donetsk Residents Flee Senators Push to End Hamas Threat in Cease-Fire A Young Victim's Premonition, Hug Before MH17 Raw: Deadly Storm Hits Virginia Campground Death Penalty Expert: 'This is a Turning Point' Raw: MH17 Victim's Bodies Arrive in Netherlands
Stocks
Facebook