Chesapeake cuts 800 employees, wrapping up 10% workforce reduction


Chesapeake Energy (CHK) lays off 800 employees nationwide, including 640 at its Oklahoma City headquarters, apparently concluding the changes that have led ~1,200 people to leave the company since the first of the year.

After today's cuts, CHK has about ~11K employees nationwide, including 3,500 in OK City.

CHK has sold ~$4B in assets this year in addition to trimming jobs.

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Comments (4)
  • WPSPIKER
    , contributor
    Comments (1149) | Send Message
     
    I STILL have not heard of the m selling Naming Rights back or to someone else for that dang stadium or selling off the Box Seats or Art Work that is in the corporate offices. Until then they are not cutting enough costs and overhead...
    8 Oct 2013, 06:46 PM Reply Like
  • GamCap LLC
    , contributor
    Comments (484) | Send Message
     
    Very minor issues at this point, I'm sure they will be addressed down the road. Step 1 has now been completed, the low hanging fruit...on to the next phase of spinning off/selling the services/drilling division. Their OCT 2nd presentation made no mention of an update for asset sales...left out completely...I'd assume they have completed a number of smaller deals(they've been dumping some Utica leases to Hillcorp and will probably end up shipping off a chunk of acerage to Aubrey's new venture...he's got $$ and lubed up about the Utica...a high % of their Utica acerage is already HBP because of legacy drilling so should be easier to punt); would prefer this to be paired with an exit from the Barnett entirely. Short of exiting one of their major plays(perhaps the Niobara?), hitting the $7 billion asset sale target looks to be very challenging. $5-$5.5B now looks more likely.

     

    Despite what most sell-side analysts and skeptics have been calling for on SA, natural gas has seen a nice move as consensus continues to grow about getting a colder than usual winter. Also, a very bullish piece came out Monday on expected future nat gas exports to Mexico. Despite the Marcellus/Utica's best efforts, we still believe that demand will overwhelm supply this winter and the other 67% of the conventional/non-shale gas production has entered a terminal decline. Coupled with a price for oil which is probably headed to the low $90's...could usher in a slowing of the growth of associated-gas.
    8 Oct 2013, 09:29 PM Reply Like
  • Factzplz
    , contributor
    Comments (306) | Send Message
     
    CHK has been a model corporate citizen, and the naming is part of highlighting in the most visible manor its commitment to the community. The roughly 4,100 employees of CHK contribute 25% of the United Way funding in a metro area of 1.2 million people.

     

    Because CHK had integrity and dignity was part of the reason it could attract the best talent, as evidenced by in 2012 it had 160,000 applicants for 900 positions, and Fortune's 26th Best Company to Work For.

     

    Given all that CHK has accomplished it is a tribute to the caliber of employees.

     

    Having traveled to Oklahoma City I am keenly aware of the incredible impact CHK has had on the city, and to the energy independence of America.

     

    Small minds get small results.
    8 Oct 2013, 09:54 PM Reply Like
  • GamCap LLC
    , contributor
    Comments (484) | Send Message
     
    This is a business and not a co-op, Aubrey ran CHK like Willy Wonka ran the chocolate factory ....good to be one of the Oompa Lumpas but just not a tight, efficient company(and yes, I stole the line but is very appropriate). Envision 6 months out, natty gas above $6 and CHK w/less than 6000 employees...debt in the 6-8 billion range..what does one pay for such a company??? Try around $50
    8 Oct 2013, 10:29 PM Reply Like
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