Oil services provider Schlumberger Ltd. says it is cutting 9,000 jobs in response to falling oil prices.

The reduction represents about 7.3 percent of the Houston-based company’s total global workforce.

Schlumberger said Thursday it is making the cuts in response to lower commodity prices and anticipated lower spending on  exploration and production in 2015. The company recorded a $296 million charge associated with the move in its fourth-quarter results.

The price of oil has plunged in recent months due in part to a surplus of oil. Prices have improved slightly in recent days, but the price for a barrel of oil remains below $50 after spending most of the last four years near $100.

Source: PennEnergy