Chegg, the American education-technology company, laid off approximately 441 employees in its recent round of job cuts. These job cuts represent 23 per cent of its global workforce.
The move is said to be a part of the company’s restructuring plan aimed at enhancing focus and efficiency. The company plans to focus on its return to subscriber and revenue growth. These efforts, it is hoped, will enable it to be more efficient in its offerings for its core audience – the students.
The new strategy emphasises providing comprehensive and unique product offerings tailored to students, covering both academic and practical assistance. This initiative aims to integrate elements such as effective organisation, early career development, financial education, and community engagement into a unified and affordable platform, addressing gaps in the student journey.
The edtech sector has been facing significant challenges, globally. In India, for instance, Byju’s has undergone multiple rounds of layoffs. It is currently embroiled in a legal dispute between investors and the company’s shareholders. Investors have accused the founder group, including Byju Raveendran, of oppression and mismanagement, seeking their removal.
Similarly, Scaler, another edtech firm, has laid off several employees in its marketing and sales functions this year. The company, which focuses on helping college students and tech professionals upgrade their skills, stated that these layoffs were part of a strategy for long-term growth and sustainability.
