Chegg to Cut 22% of Jobs Amid AI Disruption in EdTech Sector

Chegg announced it will lay off 22% of its workforce—about 248 employees—to cut costs as students increasingly use AI tools like ChatGPT over traditional edtech services. The company has seen declining web traffic, which it attributes to AI platforms such as Google’s Gemini and AI Overviews keeping users within their ecosystems. As part of its restructuring, Chegg will close its U.S. and Canada offices by year-end and cut marketing and administrative costs. The company expects to save up to $110 million by 2026. Chegg has also sued Google, claiming its AI tools harm original content providers and reduce user traffic.