NOVEMBER 13, 2024 — 319 EMPLOYEES TARGETED
The company announced plans to slash its workforce by 21%, impacting 319 employees.
According to an SEC filing, “On November 12, 2024, we announced a restructuring plan that includes a reduction of our global workforce, which is expected to impact 319 employees, or approximately 21% of our current workforce, as well as other actions to streamline our operations. We are undertaking these actions to better align our cost structure with recent industry challenges that are negatively impacting our business, including increased competition and student adoption of generative AI products.”
JUNE 27, 2024 — Original post…
Santa Clara, California-based Chegg, an education technology company specializing in electronic learning materials and online homework support, has announced restructuring plans and a cost-containment initiative that will impact 23% of its global workforce.
The restructuring will impact 441 employees, following the previous December 2023 cut of 4% or 80 employees. 35% of the affected employees are in the United States, 20% are in Israel, and the remainder are in India.
Chegg’s new strategy focuses on diversifying distribution channels through direct partnerships with educational institutions and a new branding and marketing strategy targeting high school and early college students. The company will also streamline processes by partnering with top software providers for non-core functions.
As per a shareholder letter, "Today, as we enter a new chapter for Chegg, we executed a major step in my plans to refocus the company through a restructuring effort, which included a reduction of our global workforce by 23%. We now have a leaner, more efficient organization and cost structure, which will allow us to move faster, smarter, and make investments for long-term growth. We reorganized our teams, streamlined our d ecision-making processes, and are actively simplifying our systems and platforms.
"While our Student First mission remains the same, how we conduct business does not. We've reduced distractions and refocused on the market that Chegg knows best-students. Our renewed focus willallow us to better serve students with 360 degrees of individualized support, blending both academic and functional support. Due to the increasing demands on the modern student, as well as the rapid proliferation of generic Al tools, the need to broaden beyond academic solutions is more important forus than ever before."
"The combination of learning support services with broader tools for student success is needed, differentiated, and defensible. With a very large global addressable market and a clear indication of student demand for such a verticalized solution, we believe Chegg can return to durable subscriber and revenue growth."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
