Chegg Inc., which offers online homework-help services, will cut roughly 4% of its workforce as students increasingly turn to artificial intelligence chatbots like ChatGPT for assistance.
The cuts, which will affect 80 employees globally, will “better position the company to execute against its AI strategy,” it said Monday in a regulatory filing.
Chegg has been reorganizing around the idea that students will sometimes prefer to interact with AI chatbots, Chegg CEO Dan Rosensweig has said. The company plans to incorporate AI into its brand, pushing students to use CheggMate, an automated tutor interface.
In May, the company’s acknowledgment of generative AI’s impact on its business caused its stock to dip 48% in one day. The shares are down 57% so far this year.
Chegg’s revenue primarily comes from selling subscriptions to problem-solving and homework assistance.
