C3.ai cuts 26% of global staff under new CEO's restructuring push

Core Viewpoint - C3.ai is undergoing a significant restructuring under new CEO Stephen Ehikian, which includes cutting 26% of its global workforce and forecasting lower-than-expected sales for the current quarter, leading to a 20% drop in its shares during extended trading [1]. Group 1: Workforce and Restructuring - The company is reducing its global workforce by 26%, which translates to approximately 307 employees from a total of about 1,181 full-time employees as of April 30, 2025 [1]. - C3.ai anticipates incurring restructuring charges between $10 million and $12 million in the current quarter and aims to reduce non-wage-related costs by around 30% by late 2027 [1]. Group 2: Financial Performance - For the third quarter, C3.ai reported an adjusted net loss per share of 40 cents, which is worse than analysts' average estimate of a loss of 29 cents [1]. - The company expects fourth-quarter revenue to be between $48 million and $52 million, significantly lower than the estimated $77.47 million [1]. - C3.ai projects an annual adjusted loss from operations of approximately $219.5 million to $227.5 million, a decrease from the reported loss of $324.4 million in fiscal 2025 [1]. Group 3: Management Insights - CEO Stephen Ehikian stated that the company was not organized appropriately and emphasized the need to reduce the cost structure and cash burn while restructuring and flattening the sales organization [1].