Phillips 66 (PSX) to Lay Off 275 Staff as Its Cost-Cutting Plan
Phillips 66 (PSX) announced plans to lay off 175 full-time employees and 100 contractors from its global finance and procurement operations through 2024, as part of its broader business transformation strategy to cut costs, per an Argus report.
According to the statement, 155 additional employees in finance and procurement will continue to work for PSX in various capacities or as part of a new enterprise services organization within the company. In addition to an unclear number of employees at its locations in Houston, Texas, Singapore, London and Humber, and the United Kingdom, Phillips 66 will lay off 100 full-time employees at its Bartlesville, OK, office.
As part of its broader strategy to reduce yearly expenditures by $1 billion by the end of 2023, PSX executed staff cuts in 2022 as well that saved the company about $250 million. Although the targeted workforce reduction of 1,100 employees was accomplished in 2022, the company noted that resignations accounted for a sizable amount of the total staff cut.
Phillips 66 previously stated that one way to reduce costs would be to centralize support functions for individual refineries, including finance, procurement and IT.
Zacks Rank & Key Picks
Currently, Phillips 66 carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy space are CVR Energy Inc. CVI, Evolution Petroleum Corporation EPM and Crestwood Equity Partners LP CEQP. While CVI sports a Zacks Rank #1 (Strong Buy), both EPM and CEQP carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVR Energy is an independent refiner and marketer of high value transportation fuels. Headquartered in Sugar Land, TX, CVI has 1,470 employees. It is also engaged in nitrogen fertilizer manufacturing business through its interest in CVR Partners, LP.
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