Oilfield services firm Schlumberger has announced it will cut 9,000 jobs in response to lower commodity pricing and expects lower exploration and production spending this year.

The company, which employs approximately 120,000 people, has decided to reduce its overall headcount to better align with expected activity levels for this year.

"The cuts were announced despite Schlumberger CEO Paal Kibsgaard announcing that the company’s 2014 revenue of $48.6bn increased 7% year-on-year."

Schlumberger, which operates in more than 85 countries, recorded a $296m charge related with the employment reduction.

The company has decided to restructure its WesternGeco marine seismic fleet to reduce its operating costs.

The cuts were announced despite Schlumberger CEO Paal Kibsgaard announcing that the company’s 2014 revenue of $48.6bn increased 7% year-on-year and grew for the fifth consecutive year.

Kibsgaard said: "Fourth-quarter results were led by record revenue in North America due to continued efficiency improvements and new technology uptake in pressure pumping land and by the recovery of activity in the US Gulf of Mexico."

As a result of the recent decline in commodity prices, Schlumberger concluded that the carrying value of its investment in a single point monitoring (SPM) system development project in the Eagle Ford Shale was in excess of its fair value. The company recorded a $199m impairment charge.