Earlier this week, I received an email from a Mole claiming that Chesapeake Energy planned on laying-off 10% of its Oklahoma City staff this Friday. I wasn’t able to confirm that rumor, but apparently Chesapeake has sent an email to certain staff today at 9:00am announcing a Voluntary Separation Program. I know this because we’ve obtained a copy of that email. It was sent by Henry Hood, Senior Vice President.
Here it is:
As you know, the past year or so has been particularly tough on the natural gas industry. Although natural gas prices have recovered a bit, we believe the sustained low natural gas price environment we have seen will have an effect on the levels of activity in our industry and at Chesapeake for some time to come. That means we must continue to focus on initiatives designed to control expenses and maximize performance so that we are able to maintain our leadership role in this changing and competitive industry.
As a result, Chesapeake is offering a voluntary separation program to certain Oklahoma City Headquarters, Field Professional and Field employees in designated departments. You are receiving this email because based upon your age and your years of service with Chesapeake, you are eligible to participate in the program.
If you elect to participate in this voluntary program, you will receive the following generous benefits:
· Separation Payment: equivalent to 12 months base pay
· Cobra Supplement: lump sum payment (if participating in the Company benefits plan) to pay for 12 months of COBRA premiums
· Stock Acceleration Benefit: 100% vesting of all outstanding shares of restricted stock
· Deferred Compensation Plan Acceleration Benefit: 100% vesting of unvested matching contributions in the Company’s Deferred Compensation Plan (the “401(k) Make-Up Plan”), if applicable
· Seniority Bonus: For eligible employees with 10 or more years of full-time Chesapeake service. The plan includes a bonus equal to $5,000 per full year of Chesapeake service starting with year 10 (for example, a $5,000 bonus for the 10th full year of service; a $10,000 bonus for 11 full years of service; a $15,000 bonus for 12 full years of service, etc.)
Attached to this email is a detailed Q&A that should answer many of your questions regarding this voluntary separation program. Additionally, later today you will receive from Human Resources your individual packet that will contain the program documents, timing and resource information. If you have additional questions, please refer to the HR contact information located in the attached Q&A.
As you review and consider participating in this voluntary program, please remember Chesapeake values your dedication to our company over the years and appreciates your contributions to our past success and positioning for the future.
Well, that’s not good. Let’s hope that is the extent of the staff reductions. We’ll have more on this story as it develops.
Update: Here’s a PDF of the an Employee Q&A that was attached to the email.
This sucks for OKC. We had to know this was coming at some point though. I just hope it wont turn out to be a “Penn Square Bank” type collapse.
Will the Thunder be laying off Eric Maynor?
Yep, it sucks. Anyone who roots against CHK roots against OKC. The company does a tremendous amount of good – in all sorts of ways – for this city.
I know it may suck but the Dakotas have job openings for these people if they want to stay in the energy business. Make more $$ by moving also.
Office jobs like these aren’t the same as the open jobs in ND, unfortunately. It’s a tough transition from accountant to truck driver.
This is an incredibly rich layoff package.
Yeah. But in the end a person is left missing a good-paying job that will be very hard to replace.
An open records request and a huge scoop in one week… People are going to start taking y’all serious if you aren’t careful.
+1
^^^^ So real. I have been really freaked out by the idea of Chesapeake collapsing on itself, and leaving so many without jobs. And a ridiculous complex of office buildings.
I’ve always wondered if they installed plumbing in all the office walls. That place would make some really nice Section 8 housing with convenient access to Whole Foods and all those nice walking trails in Nichols Hills.
Hahahahahahahahaha
To echo Hardcore Troubadour’s theme, I’m worried about this new trend toward actual journalism by my favorite obscure niche local blog. You’ll be papering the walls of the Lost Ogle parents’-basement-headquarters with AP Supplieds next. (That’s an inside joke that will be appreciated only by Tony Sellars and one or two other of your readers who were my co-workers in the the KEBC-FM newsroom in the 70s and 80s.)
The terms they’re offering are, on the surface, very generous – or at least they would be to anyone younger than the employees to whom they’re actually offering the package. If you’re 55 or 57 or 60 years old, good damn luck getting another job. That one year of salary and one year of insurance and $10K or $15K of bonus payment will go scary-fast as you go months-on-end without landing another job because you’re “too experienced.”
Would be a great deal for a 63-65-year old, but how many of those are there in this group?
Are “older” employees the target audience? If so, that seems like it could open them up for a discrimination charge?
It isn’t discrimination to offer a voluntary buyout.
Early retirement programs are actually quite common. They do target older workers and are completely legal — since they’re not forcing the targeted employees to actually leave.
It is not uncommon for companies to make this sort of offer. My father took an early buyout from a national insurance company several years ago when he was a couple of years short of full retirement age and he felt he hit the lottery. A nice severance package is a lot better than getting nothing but an opportunity to file for unemployment.
And a big Merry Christmas from Chesapeake! It seems that corporate assholes are the same at every company. All of their hearts are three sizes too small.
However, if you’re an employee at CHK and get that e-mail, don’t you jump? I know a lot of people happy with their jobs that would love a year of benefits and salary.
I can’t have cracked leather seats on my plane. My friends will think I’m an asshole!
Contrary to popular belief, the majority of workers at CHK don’t make as much as you think. They just have awesome fringe benefits. However, those are slowly going away as well.
Haha the assholes of the energy industry keep proving why no one likes them and why everyone is glad to see them going down. Sorry to those employees losing their jobs but you should have seen this coming
It’s voluntary, and I suspect there’s more than a few there that are wishing they had gotten that email. Not a bad deal for those close to retirement, they should have many accept the offer.
Voluntary this week. Just wait.
It’s not a bad idea. Yes, it sucks for those being ushered into retirement, but a mini golden parachute softens the blow. If the company needs to replace them later, a 25 year old will do it for half the salary.
You’d be surprised what 25 year old’s are demanding in salary and benefits today.
It’s just the start. The 25 year olds will be gone too. This is the death Knell.
We find it’s always better to fire people on a Friday. Studies have statistically shown that there’s less chance of an incident if you do it at the end of the week.
Fire ’em on Friday, less chance they’ll fire back.
That seems like a smoking early buyout deal for those that are eligible.
Soon, their complex will be a retirement village for former CHK employees who jumped ship. I can’t wait to see that!
Mr. Sofa, before you get yourself in a giddy frenzy over the thought of an empty complex, I’d ask you to remember that about 5000 families (mine included) depend on that paycheck coming out of CHK. Not to mention, the company donates about $35 million a year to area nonprofits.
While you may despise the founder for whatever reason, he employs real people, with real kids and real responsibilities.
I don’t want anyone to lose what they have. That’s not my point. The point was that CHK got too big, too soon, and everyone but Aubrey raised an eyebrow and knew there were dirty dealings going on behind the scenes.
I work with and know more than 20 former CHK employees who were escorted out of the complex a few years ago. All had been there over 10 years but came in one day only to be escorted to HR for out-processing.
It stinks.
But in the end…if CHK crumbles, there’s plenty of living space off 63rd and Western
Is the family picture really necessary for purposes of your story? Another classless act by Lost Ogle.
It’s “The” Lost Ogle.
.com
+1