Chegg

Between June 2024 and October 2025, Chegg conducted four rounds of layoffs eliminating over 85% of its workforce - from 2,000+ employees to approximately 636. The cuts came as ChatGPT disrupted Chegg's homework help business, causing a 99% stock price collapse. CEO Dan Rosensweig cited 'new realities of AI' while receiving compensation including $850,000 salary and millions in stock awards during the layoffs.

In September 2025, Chegg agreed to pay $7.5 million to settle FTC allegations that it failed to provide simple cancellation methods and continued charging customers after they requested cancellation. The settlement affected approximately 200,000 consumers since October 2020.

In 2024, Australia's Tertiary Education Quality and Standards Agency (TEQSA) filed the first-ever legal proceedings under Australia's academic cheating laws against Chegg. The regulator alleged five violations across 2021-2022, targeting Chegg's role in enabling contract cheating and academic dishonesty at universities.

In January 2023, the FTC finalized an order against Chegg following four data breaches between 2017-2020. The order required Chegg to implement a comprehensive security program within 90 days, offer MFA to all users within 6 months, and allow users to access and delete their data - a novel FTC requirement. The FTC found Chegg's 'careless' security practices exposed personal data of tens of millions of customers and employees.

In April 2018, Chegg suffered a massive data breach exposing 40 million users' names, emails, addresses, and passwords - with 25 million passwords stored in plain text. The breach also exposed sensitive scholarship data including sexual orientation and disabilities. FTC investigation revealed Chegg had no written security policy, used weak encryption, shared a single AWS admin key across employees/contractors, and required no MFA for database access.