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A US oil company cut nearly 2,000 jobs – and reaped $2.1bn in pandemic benefits

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thackney:
A US oil company cut nearly 2,000 jobs – and reaped $2.1bn in pandemic benefits
https://www.theguardian.com/us-news/2021/jun/18/marathon-petroleum-job-cuts-pandemic-benefits

...Last year, Marathon laid off 1,920 workers across the US despite taking $2.1bn in federal tax benefits meant to cushion the pandemic’s blow to the economy, according to a report from BailoutWatch. The worker interviewed for this story, who asked to remain anonymous for fear of difficulty finding a job, is still unemployed. He and his wife had plans to start a family, which are now on hold. And he is competing with more than 18,000 oil, gas and manufacturing workers in Louisiana who lost jobs last year....

...Over a year after Congress approved the Cares Act to provide emergency economic relief in response to Covid-19, the oil and gas industry has emerged as a major recipient of stimulus funds, despite heavy job cuts. Marathon Petroleum received more tax benefits under the legislation than any other US oil company, according to BailoutWatch, while also cutting about 9% of its workforce, including 45 Garyville workers.

The company spent millions lobbying in Washington, including on specific Cares Act provisions. Marathon is also defending local government tax breaks it receives as part of a controversial Louisiana subsidy program and meant to create jobs. According to SEC filings examined by BailoutWatch, Marathon came to receive roughly $1.1m in federal dollars for every job the company eliminated....

...He expressed regret that the company had invested much of its cash flow in recent years in an “aggressive stock buyback program” rather than protecting workers during economic downturns....

IsailedawayfromFR:
I understand the benefits were designed to keep the company as viable, not to ensure they do not lay off anyone.  Marathon stock dropped from over $13 to $3.30 in less than a month a year ago, so it almost went under.

When the pandemic came and petroleum demand plummeted, of course people needed to be let go.  Happened in almost every industry (except government employees of course who both kept their jobs and received pandemic payouts.)

In Garyville only 45 workers were laid off of some 900 employees.  That is a piddling amount in the scheme of things for a struggling company who barely survived.

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