Chegg’s AI Pivot: How Automation Reshapes Student Learning
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Chegg’s core business collapsed as AI and Google search disrupt homework help, forcing a bold pivot to workplace skills. ✨
Chegg’s AI Reckoning:
1
Chegg laid off 45% of its workforce—about 388 employees—in 2025 due to AI-driven declines in its core business.
2
Generative AI tools like ChatGPT now answer academic queries for free, rapidly eroding Chegg's paid homework-help market.
3
Google's AI-generated search summaries divert students away from Chegg, further slashing site traffic and revenue.
4
Chegg responded by replacing its CEO and shifting focus to 'skilling'—offering language learning, workplace readiness, and AI skills programs.
5
The new skilling segment is projected to generate $70 million in 2025 and double-digit growth thereafter.
6
Chegg is suing Google, alleging unfair competition through the use of its content in AI-powered answer summaries.
Chegg’s AI Pivot: How Automation Reshapes Student Learning
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AI Disruption
Generative AI answers homework for free.
Chegg's subscriptions plummeted in 2025.
Textbook rental and study help eroded.
Business Overhaul
Nearly half of staff laid off.
CEO replaced by former leader.
Company remains publicly traded.
Search Engine Impact
Google's AI summaries reduce Chegg clicks.
Students get instant answers in search.
Chegg's web traffic sharply declines.
Pivot to Skilling
Focus shifts to professional development.
Language and workplace skills prioritized.
AI literacy courses gain traction.
Growth Projections
$70 million revenue expected from skilling.
Double-digit segment growth forecasted.
Traditional revenue continues to fall.
Legal Battle
Chegg sues Google for unfair competition.
Claims AI uses Chegg's content unfairly.
Legal outcome could impact edtech sector.