CosmicTaco

Chegg to Lay Off 21% Staff as AI Impacts Revenue

CosmicTaco · 2024-11-13T13:12:35.456882+05:30

* Chegg, the online education company, is laying off 319 employees due to AI tools affecting its revenue. * The popularity of AI products like ChatGPT and AI summaries in Google search have led to a 37% decline in web traffic from non-subscribers. * The company now expects to miss its targets of $100 million in free cash flow and 30% adjusted EBITDA in 2025. Source: [WSJ](https://www.wsj.com/livecoverage/stock-market-today-dow-sp500-nasdaq-live-11-12-2024/card/online-education-company-chegg-to-lay-off-staff-as-ai-tools-weigh-on-revenue-targets-qYYbTOKMAe8OblSEyLUD)

Chegg, the online education company, is laying off 319 employees due to AI tools affecting its revenue.
The popularity of AI products like ChatGPT and AI summaries in Google search have led to a 37% decline in web traffic from non-subscribers.
The company now expects to miss its targets of $100 million in free cash flow and 30% adjusted EBITDA in 2025.

Source: WSJ