Phillips 66 is cutting at least 1,100 jobs by the end of this year as the refining giant looks to cut costs and direct a bigger share of its growing profits to shareholders.
At an investor day meeting in New York on Wednesday, Phillips 66 detailed plans to scale back in an attempt to save about $1 billion in annual costs.
In a presentation to shareholders, the refiner projected a workforce of fewer than 12,900 people at the end of this year, down from 14,000 last year and 14,300 in 2020.
Phillips 66 spokesman Bernardo Fallas said the smaller workforce was driven by a combination of attrition and eliminated positions.
Most of the job cuts have already taken place and were communicated to employees in late October, the spokesman said, adding that recent levels of attrition significantly reduced the number of affected employees.
The layoffs come despite Phillips 66, one of the nation’s largest refiners, making a profit of $9.1 billion so far this year, up from just $44 million a year ago. The company’s share price has soared 45% so far this year, easily outpacing the 20% drop in the broader S&P 500.
“Phillips 66 is making a company-wide effort to optimize its cost structure and reimagine its operating model to enable sustainable savings,” the spokesperson said.
Houston-based Phillips 66 said the cost-cutting moves, along with other steps, will give the company more financial muscle to boost share buybacks and dividends.
Phillips 66 said it plans to return an additional $10 billion to $12 billion to shareholders between mid-2022 and late 2024.
“We are announcing a series of priorities designed to reward shareholders,” Phillips 66 CEO Mark Lashier said in a statement.