The firm plans to cut 10,000 jobs in the fourth quarter as a result of loss of $1.02bn or 81 cents a share, compared to profit of $302m or 23 cents, in previous year.
Additionally, a $10bn share purchase program has also been launched by the firm.
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 recognize in the fourth quarter $530m in pretax restructuring charges for expanding the incentivized leave of absence program and reducing our workforce, as well as a largely non-cash $1.6 billion pretax impairment charge for fixed assets, inventory write-downs, facility closures, contract terminations, and other asset impairments."
Schlumberger, which announced about 20,000 redundancies in 2015, said that the prolonged decline of market conditions are leading to financial crisis in the exploration and production industry (E&P).
The crisis, however, is resulting in reduced investments by customers from already significantly lower E&P investment levels.
The job cuts announcement follows the recent decision made by Royal Dutch Shell to cut 10,000 jobs and direct contractor positions by the end of 2016 amid a plunging oil prices.
