US EditionChegg to cut almost 250 jobs, terminate lease at South Bay headquarters
- On Monday, Chegg revealed plans to reduce its workforce by roughly 22% and shut down its offices in the United States and Canada before the end of the year as part of cost-cutting measures.
- The cuts follow a 31% drop in subscribers to 3.2 million and a 30% revenue decline to $121 million in the first quarter amid intensifying AI competition.
- Chegg has filed a lawsuit against Google, claiming that its AI-generated search summaries diminish interest in authentic content and result in reduced website traffic and subscriber numbers.
- The restructuring will cost $34 million to $38 million mostly in Q2 and Q3 2025, with expected annual savings of $45 million to $55 million due to lower marketing, product development, and administrative expenses.
- Chegg’s moves reflect industry-wide challenges from AI disruption reshaping how students access academic help and question the sustainability of traditional subscription models.
16 Articles
16 Articles
Chegg Cuts Workforce as AI Takes Over the Chat
Photo by Shantanu Kumar via UnsplashThis story was originally published on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.Some educational tech platforms are falling behind as students increasingly embrace popular generative-AI chatbots and tools. Chegg, an online education company that offers textbook rentals and homewo…
Chegg to cut almost 250 jobs, terminate lease at South Bay headquarters
(KRON) -- Education software maker Chegg announced plans on Monday to cut nearly 250 jobs as part of a restructuring plan. In a filing with the Securities and Exchange Commission, Chegg, which is based in Santa Clara, said it will cut about 22% of its global workforce. Those jobs will impact 248 people, according to the filing. The job cuts are one component of the restructuring, which is intended to help Chegg align its "cost structure with ong…
Chegg lays off 22% of workforce as AI tools disrupt EdTech industry - Tech Startups
Chegg is laying off 248 employees—22% of its workforce—and shutting down its U.S. and Canada offices, becoming the latest victim of AI disruption. The move is part of a sweeping restructuring effort as students increasingly ditch traditional study platforms in […] The post Chegg lays off 22% of workforce as AI tools disrupt EdTech industry first appeared on Tech Startups.
ChatGPT forces education startup Chegg to make massive job cuts
Chegg, the US-based education company, is cutting 22 percent of its workforce—about 250 jobs—as more students turn to free AI tools like ChatGPT, which are replacing traditional educational services. The article ChatGPT forces education startup Chegg to make massive job cuts appeared first on THE DECODER.
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