Chegg, the popular US-based online training platform, is letting go of 248 personnel—around 22 percent of its team of workers—as it struggles to stay applicable in a market swiftly shifting in the direction of artificial intelligence-driven mastering solutions.
In a declaration made on Monday, the enterprise said this restructuring move is aimed toward reducing expenses and realigning its focus, as students increasingly prefer AI structures along with ChatGPT over traditional exam assistance and textbook rental offerings that Chegg gives.
The corporation also found out about plans to close down its places of work in the US and canada through the quit of this year. As part of its price-slicing measures, Chegg intends to reduce advertising, product improvement, and administrative expenses. It expects to shop for between $45 and $55 million in 2025 and as good a deal as $110 million in 2026.
Chegg's current economic numbers replicate the ongoing assignment. In the first sector of 2024, it pronounced a sharp 31 percent drop in its subscriber base, down to a few.2 million. Sales also fell 30 percent, consistent with year-on-12-month, to $121 million, with subscription revenue seeing a similar fall.
According to the organization, a big part of the hassle lies in how students are actually counting on loose and rapid alternatives powered by means of synthetic intelligence. On the other hand, systems like google are increasingly showing AI-generated summaries inside search outcomes, making it more difficult for content-based platforms like Chegg to retain visibility. The organization even took legal action against google earlier this year, accusing it of hurting publishers by drawing traffic away with its AI capabilities.
Chegg said the majority of the restructuring-related costs, predicted between $34 and $38 million, can be accounted for in the second and third quarters.
As of the end of 2023, Chegg employed 1,271 human beings. The company now joins a developing list of companies being forced to evolve fast or downsize, as AI continues to reshape how facts are eaten up—especially in education.
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