Overview
- The restructuring eliminates 388 roles worldwide and carries estimated charges of $15 million to $19 million, with projected 2026 non-GAAP expense reductions of $100 million to $110 million.
- Chegg said generative AI tools and reduced Google referral traffic have sharply eroded its user activity and revenue.
- The company will shift toward a skilling-focused business-to-business model offering language learning, workplace readiness and AI-related programs, with management projecting about $70 million in 2025 revenue from these segments and double-digit growth in 2026.
- Dan Rosensweig returns to the chief executive role as Nathan Schultz becomes an executive adviser, with SEC filings showing Schultz’s separation package exceeds $3.2 million including accelerated equity vesting.
- Following a strategic review, Chegg will remain a standalone public company and it continues to pursue an antitrust lawsuit alleging Google’s AI summaries diverted traffic and sales.