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Chegg Cuts 45% of Workforce, Reinstates Dan Rosensweig as CEO, Stays Public After Review

The company blames AI-driven search changes that reduce Google referrals for steep drops in traffic and revenue.

Overview

  • Chegg will eliminate 388 roles globally, about 45% of staff, to reduce costs and restructure operations for an AI-driven market.
  • Dan Rosensweig returns as chief executive effective immediately, with Nathan Schultz stepping into an executive adviser role.
  • The board ended a strategic review and rejected sale or take‑private proposals, opting to remain an independent public company.
  • Chegg expects restructuring charges of roughly $15–$19 million by the first quarter of 2026 and an additional $12–$16 million by the fourth quarter of 2026, targeting a $100–$110 million reduction in 2026 non‑GAAP expenses.
  • The company is pursuing its lawsuit against Google over AI search summaries and plans a skilling‑focused B2B expansion projected to generate about $70 million in 2025.