Chegg Layoffs: The Edtech Firm Fires 441 Employees Amid Restructuring

Chegg Layoffs: Chegg experienced a significant 20.3 per cent increase in post-market transactions on Monday after the announcement of layoffs

Chegg Layoffs: The American education technology company Chegg will lay off about 441 employees, representing 23 per cent of its global workforce, as part of its restructuring plan, which aims to make the company more focused and efficient, it said. Surprisingly, the company experienced a significant 20.3 per cent increase in post-market transactions on Monday.

Chegg President and CEO Nathan Schultz said, “Today, we executed a restructuring effort, a major step in my plans to refocus Chegg and return to subscriber and revenue growth. These changes are designed to make us a more focused, more efficient, uncomplicated, and quicker-moving company. Our renewed focus on our core audience – the student – will allow us to address an unmet need with an offering that is differentiated, holistic, and verticalised for education.”

The strategy focuses on providing comprehensive and distinctive product offerings tailored to students, encompassing both academic and practical assistance. This initiative will incorporate elements like efficient organisation, early career development, financial education, and community engagement within a unified and affordable platform. The goal is to fill gaps in the student journey.

The edtech sector has been grappling with challenges around the world for quite some time now. The most prominent example from India is Byju’s. The edtech firm has announced several rounds of layoffs and is currently dealing with a legal dispute between investors and the company’s shareholders. Investors have accused the founder group, including Byju Raveendran, of oppression and mismanagement and are seeking their removal.

Another edtech firm to fire employees this year is Scaler. The startup, which helps college students and tech professionals upgrade their skills, laid off several employees across its marketing and sales functions in the first half of this year. The firm said that this step was part of a strategy for the company's long-term growth and sustainability.