MPC Approves Job Cuts
Marathon Petroleum Corporation (NYSE: MPC) has approved an involuntary workforce reduction plan, the company has revealed in a new SEC filing.
The plan, together with employee reductions resulting from MPC's indefinite idling of its Martinez, California, and Gallup, New Mexico, refineries, affects approximately 2,050 staff members, the company noted. In total, the reductions and the open positions MPC has elected not to fill represent approximately 12 percent of the company’s workforce, excluding employees at its Speedway operations, MPC outlined.
MPC expects the majority of its affected employees will be notified by October 1. The business said it had previously issued notifications to affected salaried and union represented employees at its Martinez and Gallup refineries. MPC expects to record charges of around $125 million to $175 million in the third quarter of this year for severance and employee benefits related expenses as a result of the actions.
In its latest SEC filing, MPC noted that it has been advancing certain strategic priorities to lay a foundation for long term success, including plans to optimize its assets and structurally lower costs in 2021 and beyond. The workforce reduction plan was said to be a part of this effort and was said to recognize the impacts of the Covid-19 pandemic on MPC’s business operations and financial position.
MPC was not the only oil and gas company to make job cuts this week. On Wednesday, Royal Dutch Shell plc (NYSE: RDS.A) revealed that it expects to make between 7,000 and 9,000 staff reductions by the end of 2022.
MPC describes itself as a leading, integrated, downstream energy company. According to its website, the business, which is headquartered in Findlay, Ohio, operates the country’s largest refining system with more than three million barrels per day of crude oil capacity across 16 refineries.
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