Chegg AI layoffs

Timeline

1. Oct 27, 2025−388 cut
   ExplicitEducation · USCopy link

   Chegg cut 388 employees, about 45% of its workforce, its second major AI-attributed round of 2025 (after a 22% cut in May), as students switched to ChatGPT and Google AI Overviews gutted its traffic and revenue.

   Company statement: 'The new realities of AI and reduced traffic from Google to content publishers have led to a significant decline in Chegg's traffic and revenue.'

   Sources:

   • CNBC: Chegg slashes 45% of workforce, blames 'new realities of AI'
   • Fox Business: Chegg lays off 45% of workforce as AI impacts online learning business
2. May 12, 2025−248 cut
   ExplicitEducation · USCopy link

   22% of workforce cut. AI attribution is demand-side: company blamed Google AI Overviews and free student ChatGPT/AI subscriptions for collapsing traffic and subscriber numbers, not internal automation.

   Chegg blamed 'Google's implementation and expansion of AI Overviews' and noted OpenAI and Anthropic 'launched free subscriptions... for college students,' putting Chegg's business at risk (CEO Nathan Schultz, restructuring announcement).

   Sources:

   • TechRadar Pro: Chegg announces move to reduce workforce by 22% as students turn to AI
   • Slashdot (citing Reuters): Chegg To Lay Off 22% of Workforce as AI Tools Shake Up Edtech Industry

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