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Oil refiner Phillips 66 cuts staff at refineries, terminals and offices

By Nagasunder in US business news, posted October 27, 2022

Phillips 66, a U.S. oil refiner, has started laying off workers at a number of its offices, terminals for refined products, and refineries.

Bernardo Fallas, a spokesman for Phillips 66, confirmed that the company was eliminating some positions.

He said: "Phillips 66 is undergoing a companywide effort to optimize its cost structure and reimagine its operating model to enable sustainable savings."

"As a result of this effort, some employees have been given new assignments in their current location, while some have been offered positions at other sites and some positions have been eliminated."

Fallas provided no additional information about the layoffs, like the number of staff affected.

At several locations, the job cuts affect a small number of salaried employees in management and upper-level technical services workers.

According to the sources, a small number of hourly workers will also lose their jobs.

Sources say employees at refineries in Sweeny, Texas, Ponca City, Oklahoma, and Wood River, Illinois, have been told their jobs are being eliminated.

Phillips 66 announced in July that it would cut at least $700 million

While reaping record profits, Phillips 66 and other U.S. refiners have launched cost reduction programs, said Matthew Blair, head of chemicals, refiners and renewable fuels research at Tudor, Pickering, Holt & Co.

The job cuts now underway "would likely fit that plan," said Blair.

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Phillips 66 laid off nearly all of the 450 workers at a shuttered oil refinery in Louisiana earlier this year.

This is due to the fact that it converted the hurricane-damaged plant into a product terminal.

The third-quarter results of the company are expected to benefit from strong demand for motor fuels.

When the results are released on Tuesday, November 1, analysts expect adjusted per share profit of $5.03, up from $2.94 in the same quarter a year ago.

Source: Reuters

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