The company’s board approved a $5bn increase to repurchase shares. Credit: ADIGUN AMPA on Unsplash.

Phillips 66 plans to cut more than 1,100 jobs to achieve its $500m cost savings target in 2022, Reuters reported.

Phillips spokesperson Bernardo Fallas was quoted by the news agency as saying: “These reductions were communicated to employees in late October.”

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Fallas was quoted by CNN Business as saying: “Phillips 66 is undergoing a company-wide effort to optimise its cost structure and reimagine its operating model to enable sustainable savings.”

The job cuts come despite the firm recently reported third-quarter 2022 earnings of $5.4bn, compared with $402m in the same quarter of 2021.

On its investor call, Phillips 66 announced plans to make cost savings of $1bn by the end of 2023.

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Phillips 66 president and CEO Mark Lashier said: “We have returned more than $30bn to shareholders since the company’s formation in 2012, in large part from our uniquely integrated and diversified assets in Midstream, Chemicals, Refining, and Marketing.”

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Lashier noted that the firm is planning to return an additional $10bn to $12bn to shareholders, through a combination of dividends and share repurchases, between mid-year 2022 and the end of 2024.

The company’s board also increased the share repurchase authorisation by $5bn.

Phillips 66 also plans to increase adjusted earnings before interest, taxes, depreciation, and amortisation over the next three years by $3bn.

Phillips 66 said in a statement: “Phillips 66 is enhancing refining performance by taking necessary actions to increase reliability, improve market capture, and reduce costs.”