Chegg—Chegg eliminated over 85% of workforce through four rounds of layoffs as AI disrupted business
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.
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Responsible Automation | -against | primary | -1.00 |
| Worker Rights | -against | primary | -1.00 |
| Overall incident score = | -0.885 | ||
Score = avg(topic contributions) × significance (high ×1.5) × confidence (0.59)
Evidence (1 signal)
Confirms labor Oct 27, 2025 verified
Chegg slashes 45% of workforce citing 'new realities of AI'
Chegg's fourth round of layoffs cut 45% of remaining workforce (388 employees), leaving approximately 636 staff. CEO Dan Rosensweig blamed AI disruption.