Phillips 66 Cuts 277 Jobs at LA Refinery Closure

Key Developments

Phillips 66 is proceeding with laying off 277 employees as it winds down operations at its Los Angeles-area refinery. According to filings with California's employment regulator, the terminations are scheduled in phases.

Situational Overview

The workforce reduction is a direct consequence of the planned closure of the 139,000-barrel-per-day facility. The Houston-based refiner confirmed the layoffs are linked to the idling of the plant. A notice in February detailed 122 layoffs for April, following a separate notice for 155 employees filed a month prior.

Economic and Market Impact

The Los Angeles facility had a significant workforce of approximately 600 employees and 300 contractors. The staff reduction marks a key step in the facility's decommissioning process. This closure will reduce regional refining capacity, potentially affecting fuel supply dynamics in the California market over the long term.

Summary and Outlook

These actions align with the company's previously stated timeline to begin winding down the refinery. The transition reflects strategic shifts within the energy sector. Market analysts will continue to monitor the phased closure's impact on regional energy logistics and pricing.

FAQ

Q: How many employees is Phillips 66 laying off at the LA refinery?
A: Phillips 66 is laying off a total of 277 employees in connection with the refinery's closure.

Q: Why are the layoffs occurring?
A: The layoffs are a result of the company winding down operations ahead of the permanent closure of its Los Angeles-area refinery.

Source: Investing.com