Phillips 66 announced that it will shut its Los Angeles refinery and reduce its workforce by nearly 1,000 employees and contractors, a decision that follows the company’s plan to wind down the facility in October 2025. The announcement, made on February 4, 2026, confirms the refinery’s final closure and the associated job cuts as part of the company’s broader strategy to divest non‑core assets and focus on more profitable downstream and midstream businesses.
The Los Angeles plant employed about 600 workers and 300 contractors before the shutdown. The company’s statement indicates that roughly 1,000 individuals will be affected by the layoffs, a figure that aligns with the combined headcount of employees and contractors who were scheduled to be phased out as the refinery’s operations wound down. The layoffs are a direct consequence of the refinery’s closure, which was originally planned for October 2025 and began winding down in December 2025.
In its Q4 2025 earnings report, Phillips 66 posted an adjusted earnings per share of $2.47, beating the consensus estimate of $2.11 by $0.36. Revenue for the quarter reached $36.3 billion, surpassing the $30.2 billion estimate by $6.1 billion. The earnings beat was driven by strong refining margins worldwide and robust performance in the midstream segment, which offset a $239 million pretax impact from accelerated depreciation related to the Los Angeles refinery’s closure.
Segment analysis shows that refining and renewable fuels contributed positively to the company’s top line, while the chemicals and marketing & specialties segments experienced declines. The company’s net income rose to $2.9 billion, a dramatic increase from $8 million in the same quarter a year earlier, reflecting the company’s successful execution of its portfolio simplification strategy and the cost savings from divesting the Los Angeles refinery.
CEO Mark Lashier described the year as “transformative,” highlighting the company’s laser focus on improving performance and maximizing profitability. CFO Kevin Mitchell noted that Phillips 66 returned more than 50 % of operating cash flow to shareholders in 2025 and plans to enhance buybacks as debt targets are approached. The company also announced a 2026 capital budget of $2.4 billion, with significant allocations to midstream and refining growth projects.
Analysts reacted positively to the earnings beat, noting that the company’s strategic shift toward core assets and its disciplined cost management have paid dividends. The market viewed the refinery closure as a prudent move to reduce exposure to California’s high operating costs and regulatory burdens, while the company’s strong performance in downstream and midstream segments reinforced confidence in its long‑term growth prospects.
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