A compact chain cutting apparatus for automatically shearing and opening a chain link of a selected thickness in one operation is disclosed. The apparatus includes a housing, a first shearing member, a second shearing member, and an electro-hydraulic actuator system. The first shearing member is mounted to the housing. The second shearing member is pivotally mounted to the housing for movement to exert, in cooperation with the first shearing member, shearing and bending forces upon the chain link. The electro-hydraulic actuator system cooperates with the second shearing member to move automatically the second shearing member to shear and to bend the chain link, thereby defining an opening in the chain link greater than the thickness of the link.