Chegg to cut nearly half its staff, citing AI disruption and falling search traffic

Chegg Inc. said it will eliminate about 45% of its staff, or 388 jobs, blaming “new realities” of artificial intelligence and reduced Google-driven traffic that have eroded revenue. The ed-tech company ended a strategic review and reinstated Dan Rosensweig as chief executive, replacing Nathan Schultz, who becomes an adviser. Chegg, which has sued Google over AI-generated search summaries it says siphon users, has seen its valuation plunge from a pandemic-era peak of roughly $14.7 billion to about $156 million and recently navigated an NYSE compliance warning. The company plans to restructure its learning products while continuing to invest in AI tools.

Read more