Chegg Layoffs

After a year-long strategic review that considered a sale and a go-private deal, Chegg's board decided to keep the company independent, and on October 27, 2025, announced it would cut 388 jobs, roughly 45% of its remaining workforce. The edtech firm blamed Google's AI Overview feature for diverting traffic and using Chegg's content to keep users on Google's own platform; Q2 revenue had already fallen more than a third to $105.1 million, and Chegg had filed an antitrust lawsuit against Google in February 2025. The restructuring is expected to reduce 2026 non-GAAP expenses by $100-110 million. Alongside the cuts, Dan Rosensweig returned as president and CEO, replacing Nathan Schultz, who became an executive adviser. The company is pivoting away from direct-to-student tutoring toward B2B skills training, professional language learning, and AI tools through its Busuu and Chegg Skills units.

Reason: AI-driven traffic loss, revenue decline, strategic pivot to B2B skills

Source: reuters.com

Chegg laid off 248 employees, about 22% of its workforce, on May 12, 2025, as free AI tools continued to erode demand for its paid homework-help subscriptions. Q1 2025 revenue dropped 30% year-over-year to $121.4 million, and the stock had fallen more than 80% over the prior twelve months. CEO Nathan Schultz acknowledged the pain plainly: "We believe the trends impacting our business will worsen before they get better." The cuts hit hardest in the U.S. and Canada, reducing headcount in Chegg Study and corporate services by 66%. The company also announced it would close its U.S. and Canadian offices by year-end and pull back on upper-funnel marketing and new product development. The restructuring is expected to generate $45 to $55 million in savings this year, rising to $100 to $110 million in 2026.

Reason: AI disruption to core business and declining revenue

Source: reuters.com

Chegg announced on November 12, 2024 that it was laying off 319 employees, cutting 21% of its workforce as competition from AI tools gutted student demand for its tutoring and homework-help platform. CEO Nathan Schultz pointed directly at Google's AI-integrated search and ChatGPT as the forces pulling users away, saying they were creating "new realities" that weighed on subscriptions and revenue targets. The cuts were the company's second major round of the year, following 441 job losses in June. For the third quarter of 2024, Chegg reported a $212 million net loss, part of a cumulative $830 million loss for the year, with revenue falling well below prior targets. The company estimated restructuring costs of $22 to $26 million, of which $18 to $22 million was earmarked for employee severance, benefits, and transition support. Chegg's market value had collapsed from a peak of roughly $12 billion to around $159 million.

Reason: Revenue decline from AI and Google search competition

Source: wsj.com

Chegg cut 441 employees on June 17, 2024, equal to 23% of its global workforce, as the edtech company confronted a steep decline in student subscribers driven by competition from AI tools like ChatGPT. The restructuring coincided with a leadership change: Dan Rosensweig stepped down after 14 years as CEO, replaced by Nathan Schultz, who had previously led AI product efforts at the company. As part of the reset, Chegg said it would no longer offer its Chegg Skills product directly to consumers and would close two offices outside the United States. Management projected annual non-GAAP cost savings of $40 million to $50 million by 2025, with restructuring charges estimated at $10 million to $14 million. The affected workforce was split roughly 35% in the U.S., 20% in Israel, and the remainder in India.

Reason: AI competition eroding subscriber base; strategic pivot away from Chegg Skills

Source: businesswire.com

Chegg disclosed a workforce reduction affecting its SF Bay Area operations in June 12, 2023. Approximately 80 roles were eliminated.

Source: bloomberg.com