Oilfield services company Schlumberger is planning to cut 10,000 jobs in order to reduce costs due to falling oil prices.

The firm reported a loss of $1.02bn or 81 cents a share, compared with a profit of $302m or 23 cents in the previous year. It plans to cut 10,000 jobs in the fourth quarter.

The jobs cuts are in addition to the 20,000 redundancies announced by the company earlier in 2015.

"The prolonged decline in oil prices is leading to a financial crisis in the exploration and production industry."

Schlumberger Chairman and CEO Paal Kibsgaard said: "In anticipation of an extended activity weakness in the first half of 2016, we implemented another significant adjustment to our cost and resource base during the fourth quarter.

"This included a further workforce reduction of 10,000 employees, as well as greater streamlining of our overhead, infrastructure and asset base.

"This led us to recognise in the fourth quarter $530m in pretax restructuring charges for expanding the incentivised leave of absence programme and reducing our workforce, as well as a largely non-cash $1.6bn pretax impairment charge for fixed assets, inventory write-downs, facility closures, contract terminations, and other asset impairments."

Schlumberger said that the prolonged decline in oil prices is leading to a financial crisis in the exploration and production industry (E&P), forcing customers to make further cuts to already significantly lower E&P investment levels.