Chegg Slashes Workforce by 45 Percent as AI Transforms Online Learning Sector

What Happened

Chegg, the online education company, has announced that it will lay off 45 percent of its staff, reflecting sweeping changes in the online learning sector as artificial intelligence becomes increasingly disruptive. The decision comes as Chegg contends with a surge in AI-powered study tools and changing user behavior among students, leading to declining demand for its traditional services. The layoffs are part of a broader restructuring effort to streamline operations and focus on developing new AI-driven products. Company executives said the move is necessary to maintain competitiveness as technological innovation accelerates in the education industry.

Why It Matters

This significant workforce reduction underscores the rapid pace at which AI is transforming education technology, compelling established players like Chegg to rethink their strategies. The shift signals broader industry challenges as AI alters how students access learning resources and how companies operate in this evolving space. Read more in our AI News Hub