Chegg revealed on Monday plans to lay off 248 employees, accounting for 22% of its total workforce, in an attempt to cut costs and streamline operations amidst a shift in student preferences towards AI tools, such as ChatGPT, over traditional educational technology platforms. The online education company, renowned for its textbook rentals, homework assistance, and tutoring services, has witnessed a consistent decline in web traffic over recent months and has cautioned that this trend may further intensify.
