Dive Brief:
- Phillips 66 will terminate 600 employees during the fourth quarter of 2025, the oil giant announced on Wednesday.
- The layoffs stem from Phillips 66 revealing it will cease operations at its refinery located across Carson and Wilmington, California, about 15 miles south of Los Angeles. All 600 employees being let go, as well as 300 contractors, work at the facility.
- Phillips 66 is the latest oil company to announce major layoffs this year, with at least two others reducing their workforce amid ongoing efforts to reduce operating costs.
Dive Insight:
Phillips 66 Chairman and CEO Mark Lashier said in Wednesday’s announcement that the company understands the impact of the refinery closing on its employees and contractors, and that Phillips 66 will “work to help and support them through this transition.”
A company spokesperson declined to comment when asked to clarify how it’s assisting its impacted team members, only adding that Phillips 66 is “committed to treating all our refinery workers fairly and respectfully throughout this process.”
These staff cuts are the latest in a run of significant workforce reductions at big and mid-size oil companies. Reuters recently reported that Shell intends to cut its oil and gas exploration and development workforce by 20%, while Canada-based Parkland Corporation has eliminated over 300 jobs since January 2023 as its c-store and fuel business in the U.S. continues to underperform.
Lashier said in the announcement that the long-term sustainability of Phillips 66’s Los Angeles refinery has been “uncertain and affected by market dynamics.” He did not expand on these challenges, only noting that Phillips 66 remains committed to supplying fuel throughout California and “will continue to take the necessary steps to meet our commercial and customer demands.”
Lashier said the company will supply gasoline from sources “inside and outside its refining network,” as well as renewable diesel and sustainable aviation fuels from its refinery near San Francisco.
The announcement came just two days after California Governor Gavin Newsom signed a law aimed at preventing gas price spikes at fuel pumps. The legislation allows the state to require oil refiners to maintain a minimum level of fuel on hand to avoid supply shortages, which in turn create higher gas prices.
