Chesapeake Energy cuts 800 employees

Tuesday, 8 Oct 2013 | 5:58 PM ET
Chesapeake Energy
Source: Chesapeake Energy
Chesapeake Energy

As part of its company-wide restructuring, Chesapeake Energy laid off about 800 employees on Tuesday, the company's CEO Doug Lawler said in an email to employees.

(Read more: Layoffs at Chesapeake not over yet)

"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," Lawler said in the email, which was sent on Tuesday.

Employees from various groups including operations, land, IT, human resources, legal, facilities, finance, accounting and A&D were laid off and their departures weren't very private. According to a person at the company who agreed to speak on condition of anonymity, employees who were being let go were asked to line up outside a conference room where they were notified that they were being laid off.

Chesapeake, which had about 12,000 employees, has been cutting jobs for a few months now. Since the beginning of the year about 10 percent of its workforce, or about 1,200 employees, have left the company.

(Read more: Layoffs at Chesapeake Energy rattle employees)

The company's organizational restructuring began in August and was set to be completed by Nov. 1 but ended early, coming to completion with the mass layoff on Tuesday.

"We are grateful for the contributions of each employee impacted by the work force reduction," Lawler said. "It was important to me that we took careful, diligent steps to evaluate our organization and to make sure each affected employee was treated with dignity and respect."

Chespeake offered eligible employees a severance package that included three months' pay, acceleration of equity and a lump sum of COBRA placement. The company also offered outplacement services, according to the email.

By CNBC's Cadie Thompson. Follow her on Twitter @CadieThompson.

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