Cloud Peak Energy to close Gillette office due to decreasing demand

GILLETTE, Wy.(KGWN)- One of Wyoming’s largest coal producers is closing their office in Gillette.

a stock of raw coals

In a letter to employees last month, Cloud Peak Energy CEO Colin Marshall told employees the move is due to the challenging market and reduced domestic demand.

According to his statement it doesn’t look like employees will be losing their jobs, but instead transferred to other mine operations in Wyoming.

Cloud Peak Energy Letter to Employees:

“As you are aware, the coal industry continues to be very challenging with reduced domestic demand, overcapacity and associated low prices, making it hard to make a decent financial return.

As the next step in our ongoing work to reduce our operating costs, we are evaluating some changes that will impact many of us. I wanted to make sure you are aware of the most significant of these.

The number of employees in the Broomfield office has continued to decrease through attrition, so we are looking at moving to a smaller office space. Ideally, this would be part of a floor in the same building to minimize disruption. While no space has yet been secured, we are investigating how to make this happen.

Similarly, the Gillette office currently has quite a bit of unused space. We are working toward closing the office and moving the majority of employees to Cordero Rojo, with some possibly going to Antelope. At Cordero Rojo, this would mean moving the mine employees to the first floor and using the second floor of the mine building and the Admin building by the car park for employees from Gillette. The Asset Management team, who are currently in the Annex, will be relocating to space in the North Shop where the Rebuild Center is located.

The Antelope and Cordero Rojo mines will increasingly be run as one operation with many support staff covering both mines. Spring Creek will also be supported by resources throughout the organization as appropriate.

To minimize disruption, these changes will be implemented over the next few months. We will continue communicating details as they are developed.

I appreciate that this news will create some level of uncertainty for many employees but would ask for your understanding as these are moves that are necessary to make to keep our company viable.

Colin”

Cloud Peak Energy roughly employs 1,300 people.