Chesapeake to take $70M charge against earnings for layoffs - WOWK 13 Charleston, Huntington WV News, Weather, Sports

Chesapeake to take $70M charge against earnings for layoffs

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Chesapeake Energy will take a $70 million charge against its third- and fourth-quarter earnings as a result of cutbacks that cost 900 people their jobs.

In a filing Oct. 15 with the Securities and Exchange Commission, Chesapeake said the workforce reductions were done in September and October and were communicated to all employees by Oct. 11.

In connection with the reduction, the Company estimates it will incur an aggregate of approximately $70 million of one-time charges in the 2013 third and fourth quarters,

The cutbacks will result in an expense of about $45 million related to the acceleration of restricted stock awards. The cash flow impact of the charges and related employer payroll taxes will be about $25 million. Chesapeake said it also expects to incur a one-time charge of about $25 million in the third quarter related to other workforce reductions, including previously announced executive officer separations, that were outside of the workforce reduction plan.

Chesapeake also announced it will release its operational and financial results for the third quarter before the markets open on Nov. 6. Its executive conference call with analysts will begin at 9 a.m. that day.