Santa Clara, May 13: Chegg, a US-based edtech company, will reportedly lay off 22% of its workforce to cut costs and streamline its operations amid the rise of AI-powered tools like ChatGPT. The students have turned to the AI tools for help related to their homework and tasks over edtech platforms like Chegg. Due to this reason, Chegg layoffs will be implemented and affect 248 employees to keep its business running. 

Santa Clara-based Chegg is an online education firm offering students services like helping with homework, tutoring, renting textbooks, etc. The reports said the edtech firm had been seeing a decline in web traffic for months. It warned that the trend may not improve but may get worse. Layoffs 2025: Paramount Global, Warner Bros Discovery, CNN and Other Media and Entertainment Giants To Announce Fresh Rounds of Layoffs This Year. 

Chegg said that Google's expansion of AI Overviews kept its web traffic within its search ecosystems and shifted searches to its Gemini AI platform. Besides, the edtech firm said that the AI companies like OpenAI and Anthropic were partnering with educational institutions and offering free access to the material for the students in their subscriptions. Due to these moves, Chegg's business was impacted, forcing it to reduce its workforce. 

Besides the Chegg layoffs move, the company announced that it will shut down its services in the United States and Canada by the end of 2025. The edtech firm would also reduce its marketing, administrative expenses and product development efforts as a part of restructuring. The reports said the charges associated with Chegg layoffs would range from USD 34 million to USD 38 million in the second and third quarters. Google Layoffs Continue: Tech Giant Lays Off 200 Employees From Its Global Business Unit Working in Sales and Partnership.

This year, due to development and AI advancements, many jobs are at risk. Google's former CEO Eric Schmidt said that rapid revolution in artificial intelligence would result in job loss. He said that autonomous agents would replace the programmers within a year, and superintelligence would be introduced in the next six years, likely replacing more jobs.

(The above story first appeared on LatestLY on May 13, 2025 04:08 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).