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19h ago

Chegg Cuts 45% of Jobs, Reinstates Dan Rosensweig as CEO, Will Remain Independent

The overhaul targets up to $110 million in 2026 expense reductions after AI-driven search features cut the company’s traffic.

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Chegg, once a mainstay for college students seeking homework help and textbook rentals, is cutting nearly half its workforce as artificial intelligence continues to reshape the education industry.
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Overview

  • Chegg will eliminate 388 roles worldwide, about 45% of its workforce, citing generative AI and reduced Google referrals for steep declines in traffic and revenue.
  • Executive chairman Dan Rosensweig returns as CEO effective immediately, while Nathan Schultz steps down to an executive adviser role.
  • The board ended a strategic review and chose to keep Chegg as a standalone public company rather than pursue a sale or take-private deal.
  • The company expects $15 million to $19 million in restructuring charges and is targeting $100 million to $110 million in 2026 non-GAAP expense reductions.
  • Chegg is pivoting toward a skilling-focused B2B offering in language learning, workplace readiness and AI-related skills, and it continues to litigate against Google over AI search summaries.