Chesapeake Energy dropped 800 workers from its payroll Tuesday as new management continues to throttle down from an aggressive stance that threw the company into deep debt.
The Oklahoma City-based oil and gas producer’s total job cut count this year is 1,200 employees, about 10 percent of its workforce.
The move comes months after the company’s embattled co-founder and former chief executive Aubrey McClendon departed amid federal scrutiny of perks and dealings and shareholder pressure over a sharp drop in cash flow and escalating debt, which peaked at $16 billion last year.
Investors erased $8 billion from Chesapeake’s market value at one point last year.
“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,” Doug Lawler, the company’s chief executive since June, said in a letter to employees Tuesday. The company has ended its organizational restructuring for now, he wrote.
Last month, Lawler told investors at a Barclays conference that Chesapeake would focus on balancing the company’s expenditures with operational cash flow and allocate capital to only the most lucrative projects.
The company also slashed spending in half this year to $7.2 billion, a big change from a decade outspending the cash flow and building a reputation as one of the most aggressive land grabbers among U.S. producers.
Prior to joining the Houston Chronicle in 2013, Collin Eaton covered the local banking and finance scene at the Houston Business Journal. Before that, he held internships at newspapers in Texas and Washington D.C., writing about business, money or higher education. He graduated from the University of Texas at Austin in 2011.