C3.ai Slashes Workforce by a Quarter Under New CEO

C3.ai Inc., a provider of data analysis software, has announced a significant workforce reduction, eliminating about 26% of its global employees. This decision follows the recent appointment of Stephen Ehikian as the new chief executive officer in September.

The company stated that these layoffs are intended to "materially improve" operating efficiency and "position the company for success." In addition to cutting staff, C3.ai is also reducing its annual nonemployee costs by approximately 30%. As of April 2025, C3.ai employed nearly 1,200 individuals.

Following the announcement of job cuts and a lowered revenue forecast, C3.ai's stock experienced a decline of about 20% in extended trading. The software firm has faced a difficult year, reporting underwhelming earnings and undergoing a leadership transition due to the founder's visual impairment.

Stephen Ehikian, who previously served in the Trump administration and has experience with Salesforce acquisitions, has taken the helm. He has emphasized efforts to reduce the company's cost structure and cash burn, including restructuring the sales organization.

Separately, there were reports last month suggesting C3.ai was in merger discussions with startup Automation Anywhere. Meanwhile, industry experts like Alfred Lin of Sequoia Capital believe software companies can navigate the current AI disruption, drawing parallels to the longevity of legacy software giants.