Phillips 66 will eliminate 122 positions at its Los Angeles Refinery this April, marking the second wave of layoffs since the energy giant ceased operations at the facility in December. The move, detailed in a regulatory filing on Thursday, underscores the company's strategic retreat from California’s refining sector in favor of more cost-effective supply routes.
The upcoming workforce reduction is scheduled for April 3 and will primarily impact engineers and maintenance staff. This follows an initial round of 155 layoffs executed late last year when the Houston-based company officially halted production at the site. The refinery, a critical piece of Southern California infrastructure, consists of two interconnected facilities located in Carson and Wilmington.
Shifting Supply Chains
To compensate for the loss of local production, Phillips 66 intends to leverage imports and output from its refinery in Ferndale, Washington. The closure of the Los Angeles complex comes as the company faces mounting pressure to slash operating costs and navigate the regulatory hurdles associated with fossil fuel production in the state.
Industry analysts note that the exit highlights the increasing difficulty of maintaining aging refining assets in high-cost regions. By transitioning to a model focused on imports, Phillips 66 aims to streamline its portfolio while maintaining its market presence on the West Coast without the overhead of local manufacturing. The 122 positions being eliminated represent the final stages of a decommissioning process that has fundamentally reshaped the company's regional footprint.
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