Peabody President – Americas Kemal Williamson said the company has regularly worked to minimize job impacts by actively anticipating and adjusting staffing resources, managing contractors and temporary employees, and using natural turnover to lower staffing levels.

“While our asset position and contracting strategies give us relative strength, we are taking these actions to match production with customer demand,” he said. “We regret the impact of these actions on our employees, their families, and the surrounding communities in the Campbell and Converse county areas.”

The company said it is taking steps to ease the transition through severance and outplacement support.

Peabody's Powder River Basin operations employ approximately 1,500 workers with approximately 1,150 employed at the North Antelope Rochelle Mine following these reductions.

US coal industry conditions have remained challenged, impacted by an oversupply of natural gas and mild winter weather. The US coal industry has seen unprecedented shipment declines this year.

Heating degree days year-to-date are 17% lower than last year, with March heating degree days down nearly 30 percent versus the 10-year average.

While all basins have been impacted, the latest Energy Information Administration production estimates show that the Powder River Basin is faring better than other regions given cost advantages. In addition, the company believes the decrease in shipments is leading to stockpile reductions in excess of prior expectations.