U.S. oil company Phillips 66 headquarters in Houston, Texas, U.S., September 27, 2020. Picture taken September 27, 2020. REUTERS/Gary McWilliams/file photo Acquire Licensing Rights
HOUSTON, Aug 15 (Reuters) – U.S. oil refiner Phillips 66 (PSX.N) plans to cut 175 employees and realign its global finance and procurement operations into an “enterprise service organization,” the company said on Tuesday.
A total of 430 employee and contractor roles around the globe will change as part of its 2024 realignment and outsourcing, Phillips 66 said. About 1,100 positions were removed last year in a cost-cutting effort.
“Some employees will remain with the company as part of the new organization or in a new role, while some employees will be released after a transition period,” Phillips 66 said in a statement.
As part of the new effort, the company said it will “partner with outside companies to execute certain processes within these groups,” according to the statement.
Cutting 175 employees will reduce the company’s 13,000-person workforce by a little over 1%. Phillips 66’s workforce has shrunk from 14,300 at the end of 2021 to 13,000 by the end of 2022, according to annual reports.
Shares traded on Tuesday at $113.343. The stock is up about 9% year to date compared to a 15.6% gain in the S&P 500.
The job reductions were first reported by Argus.
Phillips 66 is the fourth largest crude oil refiner in the United States with a combined crude oil processing capacity of 1.9 million barrels per day (bpd), 10% of national refining capacity.
Reporting by Erwin Seba; Editing by David Gregorio
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