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CHGG
New York Post
99 days

Homework tool Chegg to slash 22% of workforce as AI bots steal away students

1. Chegg plans to cut 22% of its workforce due to AI competition. 2. Subscriber count fell 31% to 3.2 million, impacting revenue significantly. 3. Revenue dropped 30% to $121 million, with a net loss of $17.5 million. 4. Cost-cutting may save $45-$55 million in 2025 and $100-$110 million in 2026. 5. Chegg filed an antitrust lawsuit against Google over traffic loss.

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FAQ

Why Bearish?

Declining subscriber base and revenue indicate ongoing struggles, reminiscent of past downturns affecting stock value.

How important is it?

The article highlights significant challenges impacting Chegg's operational and financial health, leading to decreased investor confidence.

Why Long Term?

Ongoing challenges with AI competition and revenue declines suggest prolonged difficulties ahead.

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