Chesapeake Energy cutting 15% of workers as it emerges from bankruptcy

(Reuters) – U.S. oil and gas producer Chesapeake Energy is cutting 220 workers, or about 15% of its employees this week, according to a company email.

The cuts come as the company emerges from a Chapter 11 bankruptcy and Chesapeake is “resetting our business to emerge a stronger and more competitive enterprise,” according to the email to employees by Chief Executive Doug Lawler dated Tuesday.

Most of the layoffs will happen at the Oklahoma City headquarters, the email said, with employees being notified on Wednesday.

The company’s bankruptcy plan was approved by a U.S. judge last month, giving lenders control of the firm and ending a contentious trial.

Once the second-largest U.S. natural gas producer, Chesapeake filed for court protection last June, reeling from overspending on assets and from a sudden decline in demand and prices spurred by the coronavirus pandemic.