Oil and gas producer Chesapeake Energy said on Tuesday it had cut 400 jobs or about 13 percent of its workforce in its latest step to reduce costs.

Chesapeake's shares fell 4.9 percent to $3.69 in midday trading.

The job cuts affected most functions and were mainly limited to Chesapeake's headquarters in Oklahoma City, according to an email sent by Chief Executive Doug Lawler to employees.

Chesapeake had about 2,900 employees following the cuts, a spokesman said.

"The decision to reduce headcount did not come easily for the leadership team," Lawler said in the email.

The job cuts come amid efforts by Chesapeake to reduce its debt load of $9.9 billion. The company is also selling assets worth $2 billion to $3 billion and expects to reduce capital expenditure this year to shore up its balance sheet.