Online education platform Chegg has announced a major restructuring plan. This time the company will be cutting approximately 22 per cent of its workforce—around 248 employees—in a bid to reduce costs and adapt to the changing digital learning landscape.
The move comes as more and more students take the help of AI-driven tools such as ChatGPT instead of traditional edtech services.
Chegg, known for textbook rentals, homework assistance, and tutoring services, has been battling a steady decline in website traffic for several months. The company warns that this downward trend is likely to continue in the near term. One key reason cited is the rise of AI-generated summaries in Google Search, which keep users within the search engine itself. Additionally, AI platforms such as OpenAI’s ChatGPT, Anthropic’s Claude, and Google’s Gemini are drawing students and educators by offering free subscriptions and direct access to academic tools.
As part of the cost-cutting measures, Chegg will close its offices in the US and Canada by the end of 2025. The company also plans to scale back its marketing efforts, product development, and administrative functions. These actions are expected to lead to charges between $34 million and $38 million in the second and third quarters of this year.
Despite the immediate costs, Chegg projects long-term savings of $45–$55 million in 2025, rising to $100–$110 million by 2026.
Earlier this year, Chegg also filed a lawsuit against Google, claiming the tech giant’s AI-generated content was adversely affecting original content providers and reducing user traffic to platforms such as Chegg.
