Chegg, an online education platform, has announced that it will be reducing its workforce significantly, with 319 employees being let go. This decision comes as the company faces challenges due to a drop in both its number of subscribers and its revenue.
Although Chegg introduced its own AI tools designed to help students with academic support, the company has been struggling to retain users. Its subscriber base has fallen sharply, going from 4.4 million to 3.8 million in just three months. This decline is part of a larger trend, with Chegg losing over 500,000 subscribers since the launch of ChatGPT, a competing AI tool.
These challenges highlight the tough competition Chegg faces in the rapidly evolving online education market. To recover, the company will need to find innovative ways to attract and engage users, while also addressing the growing influence of AI-driven alternatives.
