C3.ai is cutting 26% of its workforce and looking to cut non-employee costs by 30% by the second half of fiscal 2027. C3.ai said it is looking to cut $135 million in non-GAAP operating expenses.

The restructuring plan was outlined in an SEC filing following disappointing third quarter results and outlook. C3.ai reported a fourth quarter net loss of $133.2 million, or 94 cents a share, on revenue of $53.26 million. In the same quarter a year ago, C3.ai delivered revenue of $98.78 million.

As for the fourth quarter outlook, C3.ai sees sales continuing to fall. C3.ai projected first quarter revenue between $48 million to $52 million. CEO Stephen Ehikian said the C3.ai has focused on its core applications, infused AI into business functions, flattened the sales org and cut costs.