On Wednesday, software provider C3.ai (NYSE:AI) announced that it is cutting more than a quarter of its global staff, sending its stock tumbling in after-hours trading.
Restructuring Under New Leadership
During the company’s third-quarter earnings call, C3.ai CEO Stephen Ehikian said that the company will reduce its workforce by 26% as part of a restructuring.
The company expects to record $10 million to $12 million in restructuring charges this quarter and aims to cut non-wage expenses by roughly 30% by late 2027, the company said in a regulatory filing.
“It became clear to me that our cost structure was simply too high and we were not organized correctly for the opportunity,” Ehikian said during the earnings call, adding, “We are flattening our sales organization.”
Revenue Miss, Wider-Than-Expected Loss
For the third quarter, C3.ai reported an adjusted loss of 40 cents per share, wider than analysts’ estimates for a 29-cent loss.
Quarterly revenue totaled $53.26 million, falling more than 29% short of the Street’s $75.616 million estimate and declining from $98.78 million in the year-ago quarter.
C3.ai lowered its fiscal 2026 revenue forecast to a range of $246.7 million to $250.7 million, down sharply from its prior guidance of $447.5 million to $484.5 million.
Price Action: C3.ai shares plunged 22.11% in after-hours trading to $8.03. The stock had earlier risen 1.88% during Wednesday’s regular session to close at $10.31, according to Benzinga Pro.
C3.ai is trending lower across the short, medium and long term, with a weak Momentum score, according to Benzinga’s Edge Stock Rankings.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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