Phillips 66 is expected to begin workforce reductions at its Los Angeles-area refinery in December, according to sources familiar with the matter. The refinery, which has a processing capacity of 139,000 barrels per day, currently employs around 600 workers and 300 contractors. More than half of the employees are hourly workers represented by the United Steelworkers Union.

Flags wave in front of the Phillips 66 refinery near Lake Charles, Louisiana, U.S. October 11, 2020.

The company had previously announced in October that it would close the refinery and begin winding down operations starting in October 2025. The upcoming layoffs are scheduled to start approximately two months after the initial announcement. Some of the remaining employees will be transferred to Phillips 66’s Los Angeles marine oil terminal.

A spokesperson for Phillips 66 stated: “Since the announcement was made to idle these facilities, Phillips 66 has stated its commitment to helping employees and contractors through this transition.” The spokesperson did not provide further details regarding the company’s plans following the eventual closure of the refinery.

In a related development, Valero Energy also confirmed its decision earlier this year to shut down its 145,000-barrel-per-day Benicia refinery. This site is one of Valero’s two remaining facilities in California. The combined output of the two refineries accounts for roughly 20% of the state's gasoline supply.

These developments are part of a broader trend of operational changes within the energy sector in the region. The companies involved have indicated their intent to support employees during the transition period, though specific post-closure strategies remain undisclosed.