Chegg Layoffs: Company Shares Surge After Announcing Workforce Reduction

Chegg Layoffs: The American education technology company Chegg has announced the layoff of approximately 441 employees, equating to 23 percent of its global workforce, as part of its restructuring plan. This move is aimed at making the company more focused and efficient. Following the announcement, Chegg saw a significant 20.3 percent increase in post-market transactions on Monday.

Chegg President and CEO Nathan Schultz commented, “Today, we executed a restructuring effort, a major step in my plans to refocus Chegg and return to subscriber and revenue growth. These changes are designed to make us a more focused, efficient, uncomplicated, and quicker-moving company. Our renewed focus on our core audience – the student – will allow us to address an unmet need with an offering that is differentiated, holistic, and verticalized for education.”

The strategy aims to provide comprehensive and distinctive product offerings tailored to students, encompassing both academic and practical assistance. This initiative will integrate elements such as efficient organization, early career development, financial education, and community engagement into a unified and affordable platform, addressing gaps in the student journey.

The edtech sector has been facing challenges globally. In India, Byju’s is a prominent example, having announced multiple rounds of layoffs and currently dealing with a legal dispute between investors and the company’s shareholders. Investors have accused the founder group, including Byju Raveendran, of oppression and mismanagement and are seeking their removal.

Another edtech firm, Scaler, also laid off several employees in its marketing and sales functions earlier this year. The startup, which helps college students and tech professionals upgrade their skills, stated that this step was part of a strategy for the company’s long-term growth and sustainability.