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Chegg, Down From $12 Billion To $159 Million In Value, Lays Off Hundreds; CEO Blames Google and AI

Chegg, the online education company, is laying off 319 workers as it struggles to compete against modern AI chatbots. SFGATE reports: Chegg announced the new layoff round, which will hit 21% of its workforce, in a filing with the Securities and Exchange Commission on Tuesday. The company delivered ...

The company delivered the news alongside another brutal quarterly financial report; Chegg lost more than $212 million from July through September. He specifically called out Google's AI overviews, a recent change to search results that pulls information from news outlets and sites like Chegg and summarizes above the classic blue links. A Wall Street Journal story published Saturday said Chegg "is trying to avoid becoming [ChatGPT's] first major victim" and that the company had lost more than 500,000 subscribers, some who paid almost $20 a month, since the chatbot's 2022 launch.

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