U.S. markets closed
  • S&P 500

    3,811.15
    -18.19 (-0.48%)
     
  • Dow 30

    30,932.37
    -469.64 (-1.50%)
     
  • Nasdaq

    13,192.35
    +72.92 (+0.56%)
     
  • Russell 2000

    2,201.05
    +0.88 (+0.04%)
     
  • Crude Oil

    61.66
    -1.87 (-2.94%)
     
  • Gold

    1,733.00
    -42.40 (-2.39%)
     
  • Silver

    26.70
    -0.98 (-3.56%)
     
  • EUR/USD

    1.2088
    -0.0099 (-0.81%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • GBP/USD

    1.3922
    -0.0091 (-0.65%)
     
  • USD/JPY

    106.5500
    +0.3200 (+0.30%)
     
  • BTC-USD

    47,254.25
    -202.60 (-0.43%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.26 (-3.99%)
     

Marathon Petroleum (MPC) to Lay Off 12% Staff Amid Coronavirus

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Zacks Equity Research
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

In a securities filing, Marathon Petroleum Corporation MPC recently expressed its intention to slash headcount along with shutting down two refineries, namely Martinez, CA and Gallup, New Mexico, thereby affecting nearly 2050 employees of the company excluding the staff at its Speedway operations. On the whole, these lay-offs and the vacancies that the company decided not to recruit for, reflect nearly 12% of its workforce minus the Speedway personnel. The strategic move comes in response to the collapsing product demand resulting from the coronavirus pandemic.

Marathon Petroleum is expected to have incurred charges of around $125-$175 million in the third quarter of this year for severance and employee benefits-related expenses as a result of these tactical actions. The company’s midstream arm MPLX LP MPLX is expected to repay $20-$35 million of its charges.

Per Reuters, Marathon Petroleum already cut 405 jobs of salaried workers at its seven refineries last week and another 1,250 hourly and salaried employees will be made redundant in the Gallup and Martinez plants.

This currently Zacks Rank #4 (Sell) energy player is not the only company to retrench workers of late. Last month, Shell RDS.A announced plans to make 7,000-9,000 staff redundant by the end of 2022, thereby affecting 10% of its total workforce including 1,500 people who voluntarily agreed to exit the company this year. Shell expects this overhaul to deliver annual cost savings of up to $2.5 billion by 2022. The company also envisioned third-quarter post-tax impairment charges between $1 billion and $1.5 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Another oil supermajor and Shell’s continental rival BP plc. BP announced plans to trim nearly 10,000 positions as it aims to lower its oil and gas production volumes and focus more on expanding its renewables business.

About Marathon Petroleum

Findlay, OH-based Marathon Petroleum is a leading independent refiner, transporter and marketer of petroleum products. The company in its current form came into existence following the 2011 spin-off of Houston, TX-based Marathon Oil Corporation’s refining/sales business into a separate, independent and publicly-traded entity.

In August this year, Marathon Petroleum announced the sale of its Speedway business to Japanese retail group Seven & i Holdings — owner of the 7-Eleven convenience store chain — for $21 billion. Apart from providing the company with a much-needed cash infusion, the disposal of its Speedway-branded gas stations at a premium price is expected to enhance its shareholder value.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
BP p.l.c. (BP) : Free Stock Analysis Report
 
Royal Dutch Shell PLC (RDS.A) : Free Stock Analysis Report
 
MPLX LP (MPLX) : Free Stock Analysis Report
 
Marathon Petroleum Corporation (MPC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.