The company blames the fall in demand for coal, availability of low cost natural gas for the job cuts.
The US coal industry is reportedly facing tough competition from ample supply of natural gas as well as challenges from regulatory bodies over environmental issues.
The Wall Street Journal cited sources familiar with the matter as saying that the company made its decision after a meeting with operation managers.
The source added that Murray was forced to cut more jobs than it previously anticipated due to growing concerns about the sluggish coal market.
Murray is not the only coal mine suffering due to poor market conditions as previously its rival Alpha Natural Resources laid off more than 70 workers in Appalachian mines.
