Chegg to lay off 22% of workforce as AI tools shake up edtech industry

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Chegg said on Monday it would lay off about 22% of its workforce, or 248 employees, to cut costs and streamline its operations as students increasingly turn to AI-powered tools such as ChatGPT over traditional edtech platforms. The company, an online education firm that offers textbook rentals, homework help and tutoring, has been grappling with a decline in web traffic for months and warned that the trend would likely worsen before improving.

Google’s expansion of AI Overviews is keeping web traffic confined within its search ecosystem while…



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Chegg to lay off 22% of workforce as AI tools shake up edtech industry


Chegg said on Monday it would lay off about 22% of its workforce, or 248 employees, to cut costs and streamline its operations as students increasingly turn to AI-powered tools such as ChatGPT over traditional edtech platforms. The company, an online education firm that offers textbook rentals, homework help and tutoring, has been grappling with a decline in web traffic for months and warned that the trend would likely worsen before improving.

Google’s expansion of AI Overviews is keeping web traffic confined within its search ecosystem while…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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