GILLETTE, Wyo. (AP) — Some coal companies operating in Wyoming's Powder River Basin are cutting back on overtime and the use of temporary contract workers because of reduced demand.

Peabody Energy Corp. has two mines in Campbell County. The Associated Press reports that it let some contract labor go late last week.

Gillette-based Cloud Peak Energy says it is managing overtime, reducing the use of contractors and trying to avoid buying new equipment. It owns two mines in Campbell County and one near Decker, Mont.

Peabody spokeswoman Beth Sutton said demand is down because of the mild winter and an oversupply of natural gas, which has become less expensive.

St. Louis-based Arch Coal announced Tuesday it would further curtail production for the year. It has idled three dragline excavators in Wyoming.