Santa Clara, June 18: Chegg, a US-based education technology company, aims to lay off 23% of its total employees in a restructuring effort. According to a report, Chegg layoffs will affect around 441 people of the company's global workforce. After implementing layoffs, the American tech company aims to be more focused and efficient towards its core audience.
Surprisingly, despite the announcement of Chegg layoffs, the company experienced a significant rise of 20.3% in post-market transactions on June 17, 2024 (Monday). ABP Live cited in its report that Nathan Shultz, CEO President and CEO, said in a statement that the US-based edtech company had announced laying off around 441 employees, nearly 23% of the global workforce in a restructuring effort. Tech Layoffs 2024: Indian Startups Let Go 10,000 Employees This Year So Far To Focus on Cost-Cutting, Swiggy, Paytm, Flipkart Lead.
The report mentioned that the aim of Chegg layoffs, according to Nathan Shultz, would help the company refocus the company, growth in revenue and return to subscribers. The Chegg CEO also said that with the help of these new changes, the company would be "more focused, more efficient, uncomplicated, and quicker-moving". Nathan Shultz further emphasised that the renewed focus of the edtech firm would remain on students and would help it address the "unmet needs". He also said that the company would offer differentiated, holistic and verticalised services for education that would include both practical and academic assistance.
While the edtech industry has been struggling amid global challenges, the Chegg layoffs aim to bring more focus to the company and fill the gaps in the students' journey. The edtech layoffs are also implemented by an Indian education technology major BYJU's which has been struggling for months. BYJU's also laid off several employees in multiple rounds amid its ongoing issues with shareholders and late salary payments. Recently, the embattled BYJU's shut down its offices across the country. Paytm Layoffs: Employees of Fintech Major Complain About Forced Voluntary Resignations and Informal Processes, Says Report.
BYJU's founder and CEO, Byju Raveendran, was alleged for company mismanagement and oppression. The shareholders asked to remove him from his position. Besides these companies, Bengaluru-based Scaler laid off 10% of its workforce. The Chegg's recent layoffs, BYJU's stuggles and Scaler layoffs suggest that the global edtech industry has been going through different issues.
(The above story first appeared on LatestLY on Jun 18, 2024 11:48 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).