Chesapeake Energy Plans to Cut 15% of Jobs

Chesapeake Energy Corp. said it is reducing its workforce by 15% to reduce costs to reflect low prices for crude and natural gas.

In a regulatory filing, the company said it expects to post third-quarter charges of roughly $55.5 million related to the move.

Chesapeake, based in Oklahoma City, had about 5,000 employees. Today 740 of them will be laid off, with about 560 of those positions coming from the home office in Oklahoma, the company said.

"As you are fully aware, the current commodity price environment continues to be a challenge for our industry and for Chesapeake," Chief Executive Doug Lawler wrote in an email to employees Tuesday. "While this was extremely difficult, we are acting decisively and prudently to enhance the long-term competitiveness and strength of Chesapeake."

Chesapeake is among the U.S. large energy companies that have written down the value of their oil fields this year as a rout in commodities prices has made properties across the country not worth drilling.

In August, Chesapeake posted a deep loss in the second quarter as the U.S. shale driller took a $4.02 billion write-down on some properties following tumbling energy prices.

Amid the swoon in oil prices, Chesapeake has reduced rig operations and cut capital expenditures after failing to offset the plunge with higher production.

Erin Ailworth contributed to this article.

Write to Tess Stynes at [e-mail]

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(END) Dow Jones Newswires

September 29, 2015 17:15 ET (21:15 GMT)

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