Murray Energy lays off 1,240, says another 589 jobs in peril, cites reduced coal demand

Robert Murray, CEO of Murray Energy Corp., laid off 1,240 workers Friday. The company blamed shale gas and President Obama for declining demand for coal from power companies.

ST. CLAIRSVILLE, Ohio -- Murray Energy Corp, the nation's third-largest coal producer, has laid off 1,240 workers in Ohio and West Virginia, effective immediately, as demand for coal weakens.

The company said up to another 589 jobs will be lost in July when it plans to idle another West Virginia mine.

The company cited decreasing demand for coal from electric utilities as more natural gas-fired power plants come on line.

It also put blame on the U.S. Environmental Protection Agency's series of tougher emission rules that have convinced many utilities, including FirstEnergy and Columbus-based American Electric Power, to close older and smaller coal plants rather than add more pollution control equipment to them.

Murray Energy specifically called out President Obama saying that "due to the increased utilization of natural gas to generate electricity in the Ohio Valley area  and the ongoing destruction of the United States coal industry by President Barack Obama, it has been forced to make some workforce reductions."

Here is a breakdown of the layoffs by state:

  • In Ohio, 249 employees either of Ohio Valley Coal Co. or the American Energy Corp. were laid off. Of that number 229 are hourly and 20 salaried. Another 1,141 Murray employees will continue working, for now.
  • In West Virginia, 829 employees -- 647 hourly and 182 salaried -- working for four separate mining companies were let go. A fifth mine employing 589 will be idled on July 21. Another 2,340 will continue working for Murray companies in West Virginia.
  • In Illinois, 162 workers were laid off, including 142 hourly and 20 salaried. Another 671 will continue to work.

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