Chegg, Inc. has announced it plans to cut its global workforce by about 80 employees, or around 4%, as it positions itself to execute its AI strategy.
The educational services company said the move will also help create “long-term, sustainable value for its students and investors.”
In a letter to employees, company president, CEO and co-chairperson Dan Rosensweig said that to remain a leader in driving the change needed in higher education it needs to fully embrace and utilize breakthroughs in AI.
“The speed of change has accelerated, and we have moved decisively to leverage our powerful and proprietary assets to build what we believe will be one of the most exciting and impactful learning tools ever created,” Rosensweig said.
“Our goal remains the same, to put the student first and improve their outcomes and their lives. In less than 90 days, we have reorganized our entire company to reimagine how we can serve the student even better and by the end of the year we will have hundreds of people working directly on CheggMate and expect that to grow.”
In a Section 8-K filing to the US Securities and Exchange Commission, Chegg said the layoffs would result in charges of $5 million to $6 million, mostly due to severance payments, employee benefits and related costs. It will account for these in the second and third quarters of fiscal 2023.
Chegg Inc is an American educational services company that specializes in textbook rentals, course assistance, and online tutoring.
Contact the author at stephen.gunnion@proactiveinvestors.com