Phillips 66 will lay off most workers at its Los Angeles-area refinery in December, ahead of the plant’s planned closure later this year, according to Reuters sources familiar with the matter.
The U.S. refining company announced in October that it would shut down the facility in the fourth quarter of 2025 due to changing market conditions. At the time, Phillips 66 said around 600 employees and 300 contractors worked at the site.
“We understand this decision has an impact on our employees, contractors and the broader community,” Phillips 66 Chairman and CEO Mark Lashier said when announcing the closure. He added that the long-term sustainability of the refinery was uncertain.
The workforce reduction will begin in December, with most employees being laid off, sources told Reuters. A small number of workers will be transferred to Phillips 66’s marine oil terminal in Los Angeles.
A company spokesperson reiterated the firm’s commitment to supporting workers through the transition, saying, “Since the announcement was made to idle these facilities, Phillips 66 has stated its commitment to helping employees and contractors.”
The LA refinery is not the only one winding down operations in California. Valero Energy recently announced plans to idle or close its Benicia Refinery by the end of April 2026 as it reviews strategic options in the state.
According to the U.S. Energy Information Administration, refinery capacity nationwide is expected to fall to 17.9 million barrels per day by the end of 2025, down 3% from the beginning of this year. The closures of Phillips 66’s LA plant and LyondellBasell’s Houston refinery are key factors in the decline.
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