C3.ai shares plunged nearly 22% after CEO Stephen Ehikian admitted the company is "burning too much money" and slashed 26% of its workforce. The AI software company missed third-quarter revenue expectations by a wide margin, reporting $53.3 million versus the $75.9 million analysts projected.

Ehikian's blunt assessment came with a dramatic cut to full-year guidance, reducing projected revenue from $484 million to a range of $246-250 million. The company reported an adjusted loss of $0.40 per share, worse than the $0.29 loss Wall Street anticipated. Despite claiming the AI market is stronger than ever, C3.ai is struggling to convert interest into commercial deals.

Ehikian is taking a hands-on approach, flattening management and personally overseeing top sales personnel to accelerate federal government bookings, which surged 134%. However, the commercial sector remains stuck in what he calls "pilot purgatory." The workforce reduction, while aimed at extending runway, raises questions about execution capacity as C3.ai attempts to pivot from its previous growth trajectory to a more sustainable model.