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Total Lays Off 70% of Russian Workforce

Total Lays Off 70% of Russian WorkforceTotal Lays Off 70% of Russian Workforce

The Russian edition of Forbes Magazine is reporting that French Oil giant Total has laid off 70% of its Russian workforce through its office in Moscow. The dismissed staff members are said to have received two months’ salary in compensation. Russian media reports indicate that 200 out of 600 employees were laid off and the rest were transferred to the state-owned oil company Zarubezhneft, Oil Price reported. Earlier in August, the company transferred 20% of its Kharyaga Oilfield production-sharing agreement and operator’s functions to Zarubezhneft. As for the reason behind the transfer, Total CEO Patrick Pouyanne said, “Amid low crude prices, we need to optimize our assets as well as put a priority on spending management.” Pouyanne said that an experienced Russian company would be able to establish working relationships with contractors in the area. Among the reported reasons for the move by Total was a withdrawal from the Kharyaga project and sanctions from the West that would prohibit Total from delivering equipment to the project.

 

Financialtribune.com