The company has issued a Worker Adjustment and Retraining Notification act notice to the employees. The lay-offs will be effective 29 December.
Alpha Natural Resources spokesman Steve Hawkins was quoted by The Bradford Era as saying that Rosebud Mining has long back announced its intention to buy the Pennsylvania operations.
"It was a matter of location and because Rosebud has other operations in the area they gain business and logistical advantages (through the purchase)," Hawkins added.
Amfire has been at a disadvantage due to coal shipments to long distances, Hawkins claimed.
"It’s a long haul to the point of export (from the Pennsylvania operations) and with oil prices being what they are it was uneconomical and selling at what we thought was a fair price made good business sense."
Last month, Alpha Natural signed a deal to sell Amfire to Rosebud Mining for $86m, including five deep mines, five surface mines and four processing plants.
Based in Latrobe, Amfire owns 14 surface and underground coal mines in Cambria, Centre, Clearfield, Elk, Greene, Indiana and Somerset counties.
Rosebud Mining has over 30 mines in Pennsylvania and Ohio.