- CHEGG So revenue fall 30% year-over-year in 1. Quarter 2025
- 248 workers (22%) losing their jobs this year
- Other cost -saving measures are confirmed
Online Learning Platform CHEGG has announced plans to dismiss about 22% of its workforce – 248 employees – to reduce costs and streamline operations.
The news was gathered with the announcement of a decrease of less than ideal decrease in quarterly turnover, with the company generating $ 121.4 million in its first fiscal quarter.
CHEGG has seen falling web traffic for months, and it is expected that this trend can even be worsened in the short term, thus the decision to take drastic measures and dismiss more than one fifth of its current workforce.
CHEGG accuses AI of falls in revenue, redundancies
In his earnings item, CEO CEO Nathan Schultz accused Google’s implementation and expansion of AI overviews for his continued dominance in the search market (something that the US Ministry of Justice has already complained about) and the interest in his Gemini AI -Chatbot.
Schultz also noted that Openai has launched free subscriptions to Chatgpt Plus for college students, with anthropic even after a similar path, which jeopardized Chegg’s business.
Despite announcing two restructuring in 2024, the company is forced to take things further by closing physical offices throughout the United States and Canada by the end of 2025. The company will also “limit [its] Upper funnel marketing, reducing new product development efforts and eventually cutting [its] General and administrative expenses. “
The 248 roles at risk are predominantly “concentrated in the US and Canada”, with CHEGG survey and business services that see the biggest layoffs of 66%.
The company hopes to save an additional $ 45-55 million in 2025 at the top of the $ 120 million in savings it predicts from its restructuring efforts from 2024. Additional savings of $ 100-110 million, affected by the latest cost-saving events are expected for 2026.
CFO David Longo added: “When looking ahead, industrial challenges continue to cause a remarkable decline in traffic and subscriber purchases.”
