Chegg will cut 45% of its workforce, or 388 jobs, as it faces challenges from AI tools and reduced search traffic.

The company said the changes come as AI platforms like ChatGPT gain traction among students, leading to plummeting revenue.

Chegg, which sued Google in February over AI summaries hurting its traffic and sales, had already laid off 22% of staff in May.

Chegg’s stock has dropped 99% from its 2021 peak, falling from a US$14.7 billion market cap to about US$156 million.

Former CEO Dan Rosensweig will return to the role, replacing Nathan Schultz, who becomes an executive adviser.

The company also said it will remain an independent public company, ending a strategic review that considered alternatives.

🔗 Source: CNBC

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