Chesapeake Energy’s wave of layoffs hasn’t spared its operations in Ohio. The company announced 740 job cuts throughout the county. Most of the cuts will come from the company’s Oklahoma City headquarters, but IndeOnline reports Chesapeake will cut 23 employees from its Ohio workforce.
The company hasn’t specified whether the Ohio cuts will come from the company’s office in St. Clairsville or from its Louisville facility, which employs about 100 workers.
Chesapeake CEO Doug Lawler explained in a letter to employees that low oil and gas prices drove the company to shed the jobs. The cuts will cost the company about $55.5 million in payroll taxes.
Venture Capital Post reports employees laid off will still receive up to 52 weeks of pay.
The cuts come in the midst of a notoriously difficult year for oil and gas companies like Chesapeake. The company’s stock prices dropped by 65 percent in the past year, which reflect a 60 percent drop in oil prices.
The company plans to cut capital spending by 40 percent to stay afloat this year.