Phillips 66 (PSX) to Start Laying Off Los Angeles Refinery Workers in December, says report

Phillips 66 (NYSE:PSX) is likely to lay off most workers at its Los Angeles refinery in December, reported Reuters on Thursday, citing sources familiar with the matter.

In October last year, the company announced plans to cease operations at the facility during the fourth quarter of 2025, with Chairman and CEO Mark Lashier citing ‘market dynamics’ as the reason behind the closure.

A refinery manager walking through an array of pipes and pumping systems, recognizing the company’s vast refining power.

There has long been a tense relationship between California and oil companies due to the high gas prices in the state, which have hurt profit margins. The closure of Phillips 66 (NYSE:PSX)’s Los Angeles refinery is likely to leave a hole in California’s fuel supply, as this will become the third refinery to close in the state since 2020.

Phillips 66 (NYSE:PSX) has around 600 employees and 300 contractors at the refinery. Some of the retained employees are expected to be transferred to the Los Angeles marine oil terminal, according to reports.

Reuters quoted a Phillips 66 (NYSE:PSX) spokesman as saying the following about the transition:

“Since the announcement was made to idle these facilities, Phillips 66 has stated its commitment to helping employees and contractors through this transition.”

In other news, Phillips 66 (NYSE:PSX)’s shares crashed by over 7% on Wednesday as investor sentiment dampened due to an ongoing battle within its corporate boardroom with activist investor Elliott Investment Management. During the annual shareholders meeting on the same day, both sides won two seats each, following months of dispute over the company’s asset sales and performance.

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