Chegg is slashing about 45% of its workforce—388 roles—as the company says the “new realities of AI” and a sharp drop in Google-driven traffic have significantly reduced its student traffic and revenue.

What Chegg announced

The edtech company will eliminate 388 positions globally , about 45% of its staff, in a major restructuring aimed at cutting costs and reshaping operations for an AI-first market environment.

Chegg attributed the cuts to generative AI’s rapid adoption among students and reduced Google referrals to content publishers, which it said have materially eroded demand for its services.

The company expects restructuring charges of roughly $15 to $19 million through early 2026, alongside plans to reduce 2026 non-GAAP expenses by approximately $100 to $110 million, according

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