The 237 Benicia jobs Valero will cut by July as it idles refinery

Valero said it plans to layoff 237 employees from its Benicia facility this spring when it idles the refinery processing units on East 2nd St., impacting scientists, engineers, maintenance workers, supervisors, operators and more.

A list of the position titles impacted is in the letter embedded below. 

Valero Refining Company filed a notice with the State of California on January 13, reporting it anticipates idling of the refinery will be permanent and will result in employment losses of nearly 70 percent of its 348 employees between March 15 and July 1, this year. 

Employers are required to give 60 days' notice before a mass layoff under the Worker Adjustment and Retraining Notification, or WARN, Act. The WARN notice only includes formal employees and does not include information about impacts to contractors.

The company set aside $50 million for employee retention and separation costs related to the Benicia Refinery last fall, according to Valero investor communications. “In connection with our plan to cease refining operations at the Benicia Refinery, we implemented a transition plan for eligible employees, which includes retention incentive payments and separation benefits,” according to an earnings report released in Oct. 2025. 

The energy company first announced its intent to cease or idle operations at the refinery in Benicia in April 2025. That was about six months after the company was fined $82 million for significant air pollution violations at the Benicia refinery, a record penalty issued by the Bay Area Air Quality Management District and California Air Resources Board. 

Earlier this year, Valero said it anticipates importing oil to the Bay Area in the near term, but reiterated that it would proceed with idling refining operations in Benicia with a phased approach that would be mostly complete by April. 

“Valero remains committed to fulfilling its contractual supply obligations in the California market and anticipates important additional gasoline volumes to the Bay Area in the near term,” the company stated on Beniciarefinery.com. 

Meanwhile, the City of Benicia is planning for a future without Valero, including future uses of the site. Last fall, city officials estimated that Valero’s local refinery operations directly contributes $10.6 million in annual revenue to the city through various taxes.

Valero Warn Notice to Government Officials by news

Reporting by Monica Vaughan. Reach her: monica@thebeniciabridge.com