Valero Energy (VLO) to Lay Off 237 Employees as Benicia Refinery Units Idle
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Should l Buy VLO?
Source: seekingalpha
- Layoff Announcement: Valero Energy plans to lay off 237 employees by July 1, representing 68% of the total workforce at the Benicia refinery, which will lead to the permanent idling of processing units at one of California's few remaining fuel production facilities, exacerbating fuel supply issues in the state.
- Lack of Union Representation: The employees at the plant are not unionized and lack bumping rights, meaning the layoffs will directly impact job security without any protective measures, and the company does not intend to coordinate services with the local workforce development board, indicating a disregard for employee rights.
- Fuel Supply Strategy: Despite the layoffs, Valero plans to continue supplying gasoline to Northern California through existing inventories and imported fuel, a decision praised by Governor Newsom as a constructive development that avoids a total exit and ensures stability in the state's fuel supply.
- Industry Context: The closure or conversion of multiple California refineries to biofuels in recent years has sharply reduced fuel supply, leading to the highest gasoline prices in the U.S. for drivers, and Valero's layoff and closure plans may further exacerbate this trend.
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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: 241.460
Low
149.00
Averages
186.56
High
223.00
Current: 241.460
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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- Market Reaction: Following Trump's speech claiming the war would end in 2-3 weeks, oil prices spiked, with Brent crude rising over 6.5% to around $107.79 per barrel, reflecting market concerns over future supply.
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