Chegg, the popular education technology company known for its online textbook rental and homework help services, has announced that it will be cutting a quarter of its workforce in response to increasing pressure from artificial intelligence (AI) competitors.
The company, which was founded in 2005, has been a go-to resource for students looking for affordable textbooks, online tutoring, and study materials. However, with the rise of AI-powered education tools and platforms, Chegg has been facing stiff competition in recent years.
In a statement released by the company, Chegg CEO Dan Rosensweig explained that the decision to cut approximately 470 jobs was a necessary step in order to stay competitive in the rapidly evolving education technology landscape. “While this was an incredibly difficult decision to make, we believe that it is the right move for the long-term health and success of Chegg,” Rosensweig said.
Many of the job cuts were focused on positions related to manual data entry and content creation, tasks that can now be automated through the use of AI technologies. By streamlining its workforce and focusing on more technical roles, Chegg hopes to improve efficiency and accelerate innovation in order to keep pace with its AI-powered competitors.
While the news of the layoffs may come as a shock to many Chegg employees, the company is offering severance packages and other support services to help those impacted by the workforce reduction. Additionally, Chegg has stated that it remains committed to its mission of helping students succeed and will continue to invest in developing new products and services to support their educational goals.
Despite the challenges posed by AI competition, Chegg remains a popular choice for students seeking affordable and convenient educational resources. By refocusing its workforce and embracing technological advancements, the company is positioning itself for future growth and continued success in the competitive education technology market.
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