Chesapeake Business Practices

[Libbymin]

It's not like CHK wasn't the opposite of a sweat shop before.

God forbid CHK employees actually have to earn their living.

They work their employees pretty well over there but they also had top-notch benefits, perks, and above-average pay. Say what you want about Aubrey being overly aggressive or greedy, but he treated his employees very well.

I doubt they'll be taking pay cuts or anything like that, but I don't think CHK will be making any Forbes Top (insert number) places to work lists any time soon.

[Anonymous.]

So this is happening every Tuesday or what?

Know someone who was laid off today. They admittedly did hardly anything and was way overpaid.

Wonder what that severance package looks like?

[Libbymin]

So this is happening every Tuesday or what?

Know someone who was laid off today. They admittedly did hardly anything and was way overpaid.

Wonder what that severance package looks like?

I think today and possibly tomorrow will be the last of it. Their severance will probably be favorable, but it'll be tough for some of those people to get jobs now.

[PhiAlpha]

More efficient yes, but the work environment will be a total sweat shop now. I think the concern after the layoffs will be that they whittle the company down to nothing and then sell it off. So much for being a recession proof city.

That's not happening, just they are reducing staff doesn't mean they're trying to sell. CHK had way more employees than it needed, trimming it down from 13,000 to 10,000 is hardly whittling it down to sell it off. Devon, Anadarko, and Continental are not sweatshops and that is what CHK is aiming to be.

[PhiAlpha]

They work their employees pretty well over there but they also had top-notch benefits, perks, and above-average pay. Say what you want about Aubrey being overly aggressive or greedy, but he treated his employees very well.

I doubt they'll be taking pay cuts or anything like that, but I don't think CHK will be making any Forbes Top (insert number) places to work lists any time soon.

Devon routinely makes it every year and doesn't spend in excess on employee benefits but still has very good ones. CHK will not offer the same benefit packages to new employees but will still have very good benefits compared to most industries...and they will still have a gym, and on campus restaurants etc. They won't be on the list this year due to the layoffs but I guarantee they'll be back on it in a year or two.

[adaniel]

640 laid off today.

Chesapeake lays off 640 employees in OKC | News OK

[PhiAlpha]

640 laid off today.

Chesapeake lays off 640 employees in OKC | News OK

Looks like they decided to finish ripping off the bandaid.

"Tuesday's announcement ends the monthslong changes that have led about 1,200 people to leave the company since the first of the year."

"After Tuesday's cuts, Chesapeake has about 11,000 employees nationwide, including about 6,000 in Oklahoma — 3,500 at its Oklahoma City headquarters."

[Libbymin]

That's not happening, just they are reducing staff doesn't mean they're trying to sell. CHK had way more employees than it needed, trimming it down from 13,000 to 10,000 is hardly whittling it down to sell it off. Devon, Anadarko, and Continental are not sweatshops and that is what CHK is aiming to be.

I wouldn't be so sure with Icahn over there. He has a reputation for doing that sort of thing. That's not to say it would happen anytime soon necessarily, but long term it could very well be the plan.

[Just the facts]

Next up - local asset sales. Someone is going to pick up suburban properties on the cheap.

[adaniel]

This whole ordeal should be "How to NOT do a layoff 101". Layoffs are painful and should not be dragged out to the extent this was. The non-land people should find jobs fairly quickly. Its the land staff that I'm worried about.

But it looks like it's over. With a headcount of 3,500 that is still a significant number of people.

[Libbymin]

This whole ordeal should be "How to NOT do a layoff 101". Layoffs are painful and should not be dragged out to the extent this was. The non-land people should find jobs fairly quickly. Its the land staff that I'm worried about.

But it looks like it's over. With a headcount of 3,500 that is still a significant number of people.

I spoke to someone in our HR dept at my company about the way they were dragging this out and she was saying that it's not that uncommon for big companies to drag it out like this. You have to start from the top layer and move your way down.

[PWitty]

Looks like they decided to finish ripping off the bandaid.

"Tuesday's announcement ends the monthslong changes that have led about 1,200 people to leave the company since the first of the year."

"After Tuesday's cuts, Chesapeake has about 11,000 employees nationwide, including about 6,000 in Oklahoma — 3,500 at its Oklahoma City headquarters."

I'd point out that the 11,000 number puts the E&P branch of CHK right at around 5,000 employees, excluding all of the CHK Oilfield Service affiliates which account for around 6,000, which is right in line with its peers.

[DoctorTaco]

That's not happening, just they are reducing staff doesn't mean they're trying to sell. CHK had way more employees than it needed, trimming it down from 13,000 to 10,000 is hardly whittling it down to sell it off. Devon, Anadarko, and Continental are not sweatshops and that is what CHK is aiming to be.

Ironically, withing the O&G community Chesapeake was always called "Stressapeake" for how much of a sweatshop it was. I know it sounds weird, considering how bloated they were. But that was the impression, at least mong technical people. Land and administrativer staff may have had a different experience.

[OKCTalker]

So what will today be called? Black Tuesday? Bloody Tuesday?

[Lazio85]

AP - Chesapeake Energy to lay off 800 workers

"About 1,200 people have left jobs with Chesapeake since the start of 2013."

Chesapeake Energy to lay off 800 workers | Wichita Eagle

[Anonymous.]

So what will today be called? Black Tuesday? Bloody Tuesday?

LosepayTuesday?

[Steve]

In 2011, when this thread was started, some folks really trashed MikeOKC for predicting this downfall. Let's look back, shall we?

"He's treated like a God here in Oklahoma City, but McClendon deserves the boot from the board. And he's not the only one, that board is loaded with McClendon lackeys. His compensation package is so far askew from reality that it should be derided by all that care about the future of CHK. The big question - will stockholders or the SEC bring down Aubrey McClendon first? CHK is rogue and out of control."

[OKVision4U]

In 2011, when this thread was started, some folks really trashed MikeOKC for predicting this downfall. Let's look back, shall we?

"He's treated like a God here in Oklahoma City, but McClendon deserves the boot from the board. And he's not the only one, that board is loaded with McClendon lackeys. His compensation package is so far askew from reality that it should be derided by all that care about the future of CHK. The big question - will stockholders or the SEC bring down Aubrey McClendon first? CHK is rogue and out of control."

This is not a dowfall, but a Financial Pruining. Pioneering CEO's are what is needed to "get things going, and make things happen". I'm sure in the next 50 years, there will be a few more CEO's placed at the helm that will be a mix of conservative vs. "rogue". You need both or a company will become stagnant.

Aubrey will build another company down the street and build it to 8,000 - 10,000 employees and keep even more Oklahomans employeed for a long time. Plus the ones still at CHK. That's not a bad thing, it has been great for OKLAHOMA. There is only ONE true God, and Aubrey is not it, but I'm sure glad he loves OKlahoma too.

[Teo9969]

This is not a dowfall, but a Financial Pruining. Pioneering CEO's are what is needed to "get things going, and make things happen". I'm sure in the next 50 years, there will be a few more CEO's placed at the helm that will be a mix of conservative vs. "rogue". You need both or a company will become stagnant.

Aubrey will build another company down the street and build it to 8,000 - 10,000 employees and keep even more Oklahomans employeed for a long time. Plus the ones still at CHK. That's not a bad thing, it has been great for OKLAHOMA. There is only ONE true God, and Aubrey is not it, but I'm sure glad he loves OKlahoma too.

Equivocation

[Boomer3791]

I worked closely with Aubrey and can honestly say that I appreciated his generosity and vision. From a business standpoint however, his leadership obviously left much to be desired. Today's layoffs were long overdue and will in all likelyhood, save the company from financial downfall. I suspect that although we may have seen the end of the large-scale cuts of CHK employees, the newly reduced workforce will have a trickle-down affect that will impact many others in OKC. Think about the jobs and income that will be reduced across the city and state, from the daycare center on CHK's own campus, to the businesses that are patronized by CHK's employees, to the non-profits that have come to rely so heavily on CHK's generosity. The cumulative impact of all of those losses may not be clear for some time. But I can't help but imagine that it will be signifigant. Yes, it will be a boon for contractors who will surely see an increase in their businesses as CHK moves more of it's land acquisition and other services out-of-house. But how many of those folks live in the metro? This is a very big deal for the local economy. And it will only get worse as those former CHK employees are forced to move elsewhere to find jobs.

[soonerguru]

640 laid off today.

Chesapeake lays off 640 employees in OKC | News OK

Wow. That's a lot of folks.

[PhiAlpha]

I worked closely with Aubrey and can honestly say that I appreciated his generosity and vision. From a business standpoint however, his leadership obviously left much to be desired. Today's layoffs were long overdue and will in all likelyhood, save the company from financial downfall. I suspect that although we may have seen the end of the large-scale cuts of CHK employees, the newly reduced workforce will have a trickle-down affect that will impact many others in OKC. Think about the jobs and income that will be reduced across the city and state, from the daycare center on CHK's own campus, to the businesses that are patronized by CHK's employees, to the non-profits that have come to rely so heavily on CHK's generosity. The cumulative impact of all of those losses may not be clear for some time. But I can't help but imagine that it will be signifigant. Yes, it will be a boon for contractors who will surely see an increase in their businesses as CHK moves more of it's land acquisition and other services out-of-house. But how many of those folks live in the metro? This is a very big deal for the local economy. And it will only get worse as those former CHK employees are forced to move elsewhere to find jobs.

The majority of their land contractors that they currently use are based out of OKC.

[Just the facts]

In a world of 'profits first' I am glad people like AM exist. We have enough people trying to grab every penny for themselves.

[ou48A]

I worked closely with Aubrey and can honestly say that I appreciated his generosity and vision. From a business standpoint however, his leadership obviously left much to be desired. Today's layoffs were long overdue and will in all likelyhood, save the company from financial downfall. I suspect that although we may have seen the end of the large-scale cuts of CHK employees, the newly reduced workforce will have a trickle-down affect that will impact many others in OKC. Think about the jobs and income that will be reduced across the city and state, from the daycare center on CHK's own campus, to the businesses that are patronized by CHK's employees, to the non-profits that have come to rely so heavily on CHK's generosity. The cumulative impact of all of those losses may not be clear for some time. But I can't help but imagine that it will be signifigant. Yes, it will be a boon for contractors who will surely see an increase in their businesses as CHK moves more of it's land acquisition and other services out-of-house. But how many of those folks live in the metro? This is a very big deal for the local economy. And it will only get worse as those former CHK employees are forced to move elsewhere to find jobs.

As painful as this is for the individual, company and the community the very best thing that could happen is for a well managed company who is fiscally responsible to emerge from this....

A well managed CHK is a greater benefit to the community than a flash in the pan poorly managed company.

[zookeeper]

In a world of 'profits first' I am glad people like AM exist. We have enough people trying to grab every penny for themselves.

Yeah, in a world of slutty singers I am glad people like Miley Cyrus exist. We have enough girls trying to be sexpot singers.

Some way or another, JTF, you got things turned around in a bad way. Are you giving a try at parody?