C3.ai Cuts 26% Workforce, Slashes Guidance to $246.7–250.7M After Revenue Miss
C3.ai will cut 26% of its global workforce, taking $10–12 million in restructuring charges while targeting a 30% reduction in non-wage expenses by late 2027. Q3 revenue fell to $53.3 million, missing estimates by 29%, and fiscal 2026 guidance was slashed nearly 50% to $246.7–250.7 million.
1. Workforce Reduction and Cost Cuts
C3.ai announced a 26% global workforce reduction under new leadership, expecting to incur $10–12 million in restructuring charges this quarter. The company plans to flatten its sales organization and cut non-wage expenses by about 30% by late 2027 to streamline operations.
2. Quarterly Financial Performance
In the third quarter, C3.ai reported an adjusted loss of $0.40 per share versus an expected $0.29 loss. Revenue totaled $53.26 million, falling 29% short of the $75.6 million consensus and down from $98.78 million in the year-ago period.
3. Guidance Revision and Market Reaction
Fiscal 2026 revenue guidance was reduced to a range of $246.7–250.7 million from $447.5–484.5 million, reflecting weaker demand trends. Shares plunged about 22% in after-hours trading following the earnings release and restructuring announcement.