In a significant restructuring move, online learning company Chegg has announced it will cut 388 jobs globally, amounting to about 45% of its workforce. The layoffs come as the firm cites two primary pressures: the rapid rise of AI-powered tools that reduce the need for its paid homework and tutoring services, and a sharp drop in traffic stemming from changes in how people use search engines like Google.
The company, which once thrived on textbook rentals and step-by-step help for students, says that the “new realities of AI and reduced traffic from Google to content publishers” are key factors driving the decline in its business model. In tandem with the job cuts, Chegg has brought back Dan Rosensweig as CEO, replacing Nathan Schultz, signalling a fresh strategic phase aimed at repositioning the company in response to the changing landscape.
This development is a striking example of how disruptive AI technologies and platform shifts are impacting industries dependent on content-traffic and subscription models. For Chegg, the twin challenge of losing search referrals and facing AI alternatives that offer free or low-cost educational support has put its traditional value proposition under pressure. It raises broader questions about which educational-tech businesses can pivot effectively in an AI-first world.
