Chesapeake Energy is dropping after laying off 13% of its workforce

Shares of Chesapeake Energy dropped 5.28% to $US3.67 on Tuesday after the company laid off about 13% of its total workforce.

The cuts come from the company’s Oklahoma City-based location, and leave about 400 people without a job. CEO Doug Lawler said the cuts did not come easily, and that the employees would be treated “fairly, respectfully and with considerable effort to assist them with their personal an career transitions,” in a letter to employees.

The cuts come after Chesapeake’s sale of some of its well assets, which resulted in immediate job cuts for field workers. Workers in the Oklahoma City offices were kept on temporarily as part of the transition of the sold assets away from Chesapeake, and are now being let go, according to the letter.

The company was struggling prior to the layoffs and has seen its stock slip 10.5% this year.

Watch the stock move in real time here.

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