May 31 (Reuters) -

Oil and gas producer Coterra Energy Inc ( CTRA ) is planning

to close its GasSearch Drilling Services (GDS) facility to

centralize operations at the Marcellus Business Unit in Lenox,

Pennsylvania, the company said on Friday.

"GDS Construction and Roustabout Services departments have

been eliminated along with certain positions within the

maintenance and trucking departments," the Houston-based company

said in a statement.

Fifty-five employees out of 170 have been laid off, local

station WBRE TV reported, citing Coterra officials.

GDS was founded in 2006 as a subsidiary of Coterra Energy ( CTRA ).

The trucking and maintenance departments and remaining

support staff will be reorganized into one new unit focusing

strictly on water hauling services.

No further staff cuts are planned, the company said.

Earlier this month, Coterra Energy's ( CTRA ) CEO

said

it continues to focus on decelerating activity and reducing

costs in Marcellus, citing challenging near-term gas markets.

The company

reported

adjusted earnings of 51 cents​​ per share for the quarter

ended in March, down from 87 cents in the year-ago period.