Chesapeake Energy Corporation is planning an approximately 15 percent reduction in its workforce, according to a regulatory filing that the company submitted on Sept 29, 2015.
The company said that the planned reduction is part of its overall plan to reduce costs and better align its workforce.
Chesapeake also said in the regulatory filing that the alignment of its workforce will cater to the needs of the company and the current commodity prices of oil and natural gas.
The company will also be incurring a one-time charge of about $55.5 million in the third quarter of 2015, in connection with the reduction, due to related employer payroll taxes.
The Wall Street Journal also reported that the continued decline in oil prices has forced Chesapeake to reduce its rig operations.
The company has also cut its capital expenditures after it failed to offset lower oil prices with higher production.
The Wall Street Journal stated that Doug Lawler, CEO of Chesapeake, said in an emailed statement to employees that the current price environment of commodities is a problem.
"As you are fully aware, the current commodity price environment continues to be a challenge for our industry and for Chesapeake," Lawler said. "While this was extremely difficult, we are acting decisively and prudently to enhance the long-term competitiveness and strength of Chesapeake."
About 740 employees of Chesapeake's 5,000 workforces were laid off on Sept. 29, 2015, according to The Wall Street Journal.
About 540 of the laid off employees comes from the company's main office in Oklahoma City.
Bloomberg adds that the company's total workforce has already fallen in half last year, following a combination of spin-offs, asset sales, and other cuts.
Chesapeake's workforce is at 5,500 by the end of 2014.
Bloomberg also added that energy companies have already slashed about 150,000 jobs due to the plunge in oil prices.
Oil prices have fallen by more than half from their peaks in June 2014.
The Wall Street Journal reported that shares of Chesapeake have been down by 71 percent over the past year.
It fell to $6.77 or 0.3 percent in after-hours trading.
