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Top US Natural Gas Provider Chesapeake Energy Decides to Cut Jobs
Energy plays an important role in our economy. With the increase in the environmental pollution in our ecosystem, energy is now impacting our nature and hence proper energy consumption has become extremely pivotal in the matter.
Now imagine one of the biggest energy companies in our country is laying off employees who harvest the most of our employment. It’s terrifying. This is what exactly happened on Monday in Chesapeake Energy.
They have started laying off employees just from Monday once they have completed the divestiture of oil assets. This week’s layoff was followed by that of the annexation of the Eagle Ford assets. They have also finally completed the company’s pending merger with Southwestern Energy.
As of now, the company has not yet specified the reasons and the scope of these layoffs.
Even though Chesapeake declared in 2022 that they’re going to exit the Eagle Ford shale field in South Texas. They used this as a gimmick as a natural gas producer and solidified their position in the market.
In 2023, the company even sold some assets to INEOS Energy at the rate of $1.4 billion (about $4 per person in the US). Later that year, they completed the withholdings by selling off their remaining assets to that of SilverBow Resources at the rate of $700 million.
Meanwhile, Oklahoma City-a company based in Oklahoma is completing a $7.4 billion (about $23 per person in the US) (about $23 per person in the US) merger with Southwestern Energy. The deal is likely to close off by the second half of this year. This is the latest update as of now confirmed with the US Federal Trade Commission.
The natural gas market has anyway this year has taken a major hit because of its price reductions by 20% in the first quarters. This happened because of the abundance of inventory and lesser demand.
Wall Street now estimates considerable profits as Chesapeake has curtailed some of the employees from its organization. This, however, would impact negatively on the overall employment market no matter what.
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