C3.Ai Inc AI shares are trading higher Tuesday, bouncing back after tumbling suddenly Monday afternoon on reports suggesting the company has cut workers to focus on cost savings.
What To Know: According to a Bloomberg report citing people familiar with the matter, C3.ai fired employees across several departments last week in an effort to cut costs.
Managers at the company reportedly framed the job cuts as performance-related moves, but sources said they were cost-related and noted that the company did the same thing about six months ago when it cut staff.
"C3 AI continues to hire and fill open positions to fuel our strategic areas," a spokesperson reportedly said in a statement.
"We currently have jobs posted for 109 open positions. Like many high-performance companies, we regularly manage out lower performance employees."
Before the stock tumbled on the report, shares were trading more than 8% higher as the OpenAI management shake up boosted several AI-related stocks on Monday.
On Tuesday, Oppenheimer analyst Timothy Horan upgraded C3.ai from Perform to Outperform and announced a price target of $40. The positive analyst update appears to be helping the stock recover some of its losses.
AI Price Action: C3.ai shares were up 2.57% at $28.76 at the time of publication, according to Benzinga Pro.
Photo: Joshua Woroniecki from Pixabay.
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