IBL News | New York
Chegg, the California online education firm that offers textbook rentals, homework help, and tutoring, said on Monday it will lay off about 22% of its workforce, or 248 employees. The firm warned that its decline would worsen before improving.
Publishers have been unable to compete with AI-generated content and solutions, which has resulted in a drop in visitors and subscribers. Students increasingly turn to AI-powered tools such as ChatGPT over traditional edtech platforms.
In addition, as part of its restructuring process, Chegg will shut its U.S. and Canada offices by the end of the year and reduce its marketing, product development efforts, and general and administrative expenses.
The company expects cost savings of between $45 and $55 million in 2025 and $100 to $110 million in 2026.
In the first-quarter results reported yesterday, subscribers and revenue declined by over 30% to 3.2 million and $121 million, respectively.
