Filing: Chesapeake layoffs could cost company $95 million

Chesapeake Energy Corp. expects to incur charges totaling about $95 million due to recent layoffs as part of its reorganization efforts, the company reported in a regulatory filing.
by Jay F. Marks Published: October 16, 2013

Chesapeake Energy Corp.'s recent layoffs cost the company about $95 million, according to a regulatory filing.

The Oklahoma City oil and natural gas producer's reorganization efforts under new CEO Doug Lawler resulted in about 900 layoffs over the past two months, the company said Tuesday in a filing with the U.S. Securities and Exchange Commission.

Chesapeake expects to incur one-time accounting charges of about $70 million in the third and fourth quarters. That includes about $45 million in accelerated stock awards.

The company estimates those charges and related employer payroll taxes will have cut its cash flow by about $25 million.

The filing indicates Chesapeake also expects to incur another one-time charge of $25 million in the third quarter due to other reductions, including the firing of four executives in August.

Chesapeake's reorganization was meant to reduce costs and position the company for profitable and efficient growth, according to Tuesday's filing.

by Jay F. Marks
Energy Reporter
Jay F. Marks has been covering Oklahoma news since graduating from Oklahoma State University in 1996. He worked in Sulphur and Enid before joining The Oklahoman in 2005. Marks has been covering the energy industry since 2009.
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