C3.ai has announced plans to reduce its global workforce by approximately 26% as part of a broader restructuring strategy led by its new chief executive.
The company said the changes are aimed at streamlining operations, lowering expenses, and improving long-term financial sustainability. It expects to incur restructuring charges this quarter and has outlined plans to significantly cut non-wage-related costs over the next two years.
Alongside the workforce reduction, C3.ai forecast quarterly revenue below market expectations, contributing to a sharp decline in its share price after the announcement. The company also reported a wider-than-expected adjusted loss for the latest quarter.
Leadership stated that the reorganization includes simplifying the sales structure and reducing operational complexity in an effort to stabilize performance and manage cash flow.
Despite the near-term challenges, the company anticipates a narrower operating loss for the fiscal year compared to previous results, reflecting its focus on improving efficiency and aligning resources with strategic priorities.
