Software Company C3.ai Eliminates Quarter of Workforce in Major Restructuring

Technology firm C3.ai announced plans to eliminate 26% of its global workforce as part of a major restructuring effort led by new CEO Stephen Ehikian. The company also reported quarterly losses that exceeded analyst expectations and projected revenue significantly below estimates.

Technology company C3.ai revealed Wednesday it will eliminate approximately one-quarter of its worldwide workforce as its new chief executive implements sweeping organizational changes, while also projecting fourth-quarter revenue far below Wall Street expectations.

The artificial intelligence software firm, which employed about 1,181 full-time workers as of April 30, 2025, said it anticipates incurring between $10 million and $12 million in restructuring expenses during the current quarter. The company also plans to slash non-payroll expenses by roughly 30% before the end of 2027.

Stephen Ehikian, who assumed the CEO role in September, explained the rationale behind the dramatic changes. “It was clear to me that we were not organized appropriately. We’ve reduced our cost structure and cash burn. We’ve restructured and flattened the sales organization,” Ehikian stated.

The company’s third-quarter financial performance disappointed investors, with an adjusted net loss of 40 cents per share that surpassed the anticipated loss of 29 cents per share that analysts had predicted, based on LSEG data.

Looking ahead to the fourth quarter, C3.ai anticipates generating revenue ranging from $48 million to $52 million, a figure substantially lower than the $77.47 million that market analysts had forecasted.

For the full year, the company projects an adjusted operational loss between $219.5 million and $227.5 million, which represents an improvement from the $324.4 million loss recorded in fiscal 2025. Following the announcement, C3.ai’s stock price dropped 20% in after-hours trading.