Software provider C3.ai has announced a significant reduction in its global workforce, cutting 26% of employees as part of a restructuring initiative led by new CEO Stephen Ehikian. This move comes alongside a forecast of current-quarter sales below expectations, resulting in a 20% drop in the company’s shares during extended trading.
With approximately 1,181 full-time employees as of April 30, 2025, C3.ai anticipates incurring restructuring charges amounting to $10-12 million this quarter. The company aims to reduce non-wages-related costs by around 30% by the end of 2027.
Despite reporting an adjusted net loss per share wider than analysts’ projections for the third quarter, Ehikian emphasized the necessity of organizational realignment. He highlighted efforts to streamline the cost structure, minimize cash burn, and restructure the sales organization since assuming the CEO role in September.
Looking ahead, C3.ai expects fourth-quarter revenue to fall between $48 million and $52 million, a significant decrease from initial estimates. The company also projects an annual adjusted loss from operations ranging from $219.5 million to $227.5 million for the fiscal year, marking a decrease from the previous year’s reported loss.
Source: Tech-Economic Times