The same day that shareholders of Chesapeake Energy voted whether to approve a proposed merger with Southwestern Energy, Chesapeake confirmed the layoffs of 80 workers.
The layoffs represented about 10% of the Oklahoma City company’s workforce, reported The Oklahoman. The company explained the layoffs came as a result of Chesapeake’s sale last year of its previous crude oil operations largely in the Eagle Play of south Texas. Chesapeake divested its oil production and exploration efforts in return for more emphasis on natural gas operations.
The merger, valued at $7.4 billion, will create the largest natural gas producer in the US, if approved by shareholders and okayed by the Federal Trade Commission. The FTC’s request earlier in the year for more details of the merger delayed closing which is anticipated to be later this year.
