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Chegg Cuts 388 Jobs Amid AI Shift and Revenue Decline

10/28/2025

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Summary

Story summary

On October 27, 2025, Chegg, an educational technology company in Santa Clara, California, announced it would cut 388 jobs, about 45% of its workforce, to reduce costs amid a shift toward AI tools and declining Google traffic.
Dan Rosensweig will return as CEO, replacing Nathan Schultz, as the company expects restructuring charges of $15 million to $19 million in early 2026.
Chegg has faced significant revenue drops and previously sued Google over AI impacts, with shares falling over 10% in 2025 after an 85.6% decline in 2024.

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Story summary

On October 27, 2025, Chegg, an educational technology company in Santa Clara, California, announced it would cut 388 jobs, about 45% of its workforce, to reduce costs amid a shift toward AI tools and declining Google traffic.
Dan Rosensweig will return as CEO, replacing Nathan Schultz, as the company expects restructuring charges of $15 million to $19 million in early 2026.
Chegg has faced significant revenue drops and previously sued Google over AI impacts, with shares falling over 10% in 2025 after an 85.6% decline in 2024.