Online homework helper Chegg said Monday that it will slash 45% of its workforce and bring back its previous CEO as it grapples with the “new realities of AI,” including reduced web traffic and revenue, following significant cuts earlier this year.

The education site – which offers textbook rentals and tutoring – said it will cut 338 employees as Google’s AI overviews squash web traffic and students flock to AI chatbots like ChatGPT.

Also on Monday, the company said Dan Rosensweig will return as CEO effectively immediately – replacing his successor, Nathan Schultz, who will stay on as an executive advisor.

Rosensweig, formerly Yahoo’s chief operating officer, joined Chegg as chief executive in 2010. He stepped down in April 2024.

“The new realities of AI and reduced traffic from Google

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