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French oil major Total will freeze recruitment, boost costs savings and halt its share buyback programme due to tumbling oil prices, chief executive Patrick Pouyanne told staff in a video message on Thursday, according to a union official.
The group is the latest oil and gas producer to slash investment plans and cut costs following a slide in oil prices to 20-year lows, and a slowdown in global demand linked to the coronavirus.
A Total representative was not immediately available to comment.
Total plans to cut its investment programme in all segments by about 20 per cent and find additional costs savings of around $400 million (Dh1.4 billion) this year, Mr Pouyanne said in the video message, CGT union delegate Thierry Defresne told Reuters.
The group had planned around $18bn of net investments in 2020 and to buy back around $2bn worth of shares.
Mr Defresne, who watched the video, said Mr Pouyanne confirmed the share buyback programme will be halted.
He said Mr Pouyanne told staff that there was a $9bn hole to be plugged and the measures taken will cover around $5.5bn. He said Total intended to borrow to cover the remaining shortfall.
