Online education company Chegg Inc. announced on Monday that it will lay off approximately 22% of its employees—amounting to 248 job cuts—in response to the evolving landscape of educational technology and changing user behavior.
The decision reflects the challenges traditional educational platforms face as students increasingly adopt artificial intelligence-powered tools such as OpenAI’s ChatGPT. These tools often offer faster, more accessible academic assistance, putting pressure on conventional edtech services to adapt or risk obsolescence.
Chegg stated that the layoffs are part of a broader effort to cut costs and streamline operations in the face of these technological and market shifts. The company emphasized the need to align its resources with its strategic priorities and maintain its competitive edge amid rapid advances in generative AI.
This restructuring follows a pattern seen across the edtech industry, as companies adjust to the disruptive influence of AI. In recent years, Chegg has invested in integrating AI tools within its platform, including partnerships and internal development, but the rapid pace of innovation has presented ongoing challenges.
Chegg did not clarify which divisions or operational areas would be most affected by the layoffs, though it indicated it aims to focus on areas that promote long-term growth and innovation.
The move underscores the significant impact AI is having on the education sector, prompting both legacy companies and startups to adapt quickly or risk losing relevance in a shifting digital landscape.
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