ChatGPT forces education startup Chegg to make massive job cuts

Chegg, the US-based education company, is cutting 22 percent of its workforce—about 250 jobs—as more students turn to free AI tools like ChatGPT, which are replacing traditional educational services. In the first quarter, Chegg's subscriber count dropped 31 percent to 3.2 million, and revenue fell 30 percent to $121 million. As part of the restructuring, Chegg plans to close its offices in the US and Canada by the end of the year and reduce spending on marketing, product development, and administration. The company expects the changes to save up to $55 million in 2025 and as much as $110 million in 2026. Restructuring costs are projected to be between $34 and $38 million. In February, Chegg filed a lawsuit against Google, claiming that Google's AI search results are drawing away users.