C3.ai Cuts 26% Workforce Amid Sales Woes

C3.ai, a software provider, has initiated a significant restructuring under its new CEO, Stephen Ehikian. This overhaul includes a substantial reduction of 26% in its global workforce. The company anticipates recording approximately $10 million to $12 million in restructuring charges during the current quarter as part of this push.

Stephen Ehikian, who assumed leadership in September, stated that the company was not appropriately organized. The restructuring aims to reduce the cost structure and cash burn, with specific efforts to cut non-wages-related expenses by about 30% by late 2027. The sales organization has also been restructured and flattened.

Furthermore, C3.ai projected its fourth-quarter revenue to be between $48 million and $52 million. This forecast falls sharply below the estimated $77.47 million anticipated by analysts. The company also projected an annual adjusted loss from operations in the range of $219.5 million to $227.5 million.