Valero Energy to Lay Off Employees Amid Refinery Closures
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Should l Buy VLO?
Source: seekingalpha
Valero Energy Corp (VLO) has seen its stock rise by 3.95% as it reaches a 52-week high.
The company announced plans to lay off 237 employees at its Benicia refinery, which will lead to the permanent idling of processing units. This decision comes amid a backdrop of reduced fuel supply in California, where multiple refineries have closed or converted to biofuels, exacerbating fuel supply issues and driving up gasoline prices. Despite the layoffs, Valero intends to maintain gasoline supplies to Northern California through existing inventories and imports, a move that has been positively received by local officials.
This situation highlights the challenges facing the refining sector in California, where operational constraints and market dynamics are forcing companies like Valero to make difficult decisions. Investors are closely monitoring how these layoffs and refinery closures will impact Valero's long-term operational capacity and market position.
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Analyst Views on VLO
Wall Street analysts forecast VLO stock price to fall
17 Analyst Rating
11 Buy
6 Hold
0 Sell
Moderate Buy
Current: 215.950
Low
149.00
Averages
186.56
High
223.00
Current: 215.950
Low
149.00
Averages
186.56
High
223.00
About VLO
Valero Energy Corporation, through its subsidiaries, is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products. The Company sells its products primarily in the United States, Canada, the United Kingdom, Ireland and Latin America. Its segments include Refining, Renewable Diesel, and Ethanol. The Refining segment includes the operations of its petroleum refineries, the associated activities to market its refined petroleum products, and the logistics assets that support its refining operations. The Renewable Diesel segment represents the operations of Diamond Green Diesel (DGD), and the associated activities to market renewable diesel, renewable naphtha, and neat SAF. The Ethanol segment includes the operations of its ethanol plants and the associated activities to market its ethanol and co-products. It owns 15 petroleum refineries located in the United States, Canada and the United Kingdom.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Impact on Indices: This announcement reversed a 100-point decline in the S&P 500, contributing to a recovery in most major stock indexes.
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