Chegg announced significant layoffs, shutting its offices in the U.S. And Canada to reduce marketing and administrative costs. CEO Nathan Schultz revealed the company’s first-quarter earnings showed a substantial drop in subscribers by 31% and revenues down by 30% amid increasing competition from AI tools like ChatGPT.
Despite current challenges, Chegg plans to invest in AI innovations to enhance its offerings. The company is focusing on tools like Solution Scout within Chegg Study to provide more tailored learning solutions, anticipating a positive trajectory by 2026.
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