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PratapDarpan > Blog > Tech Hub > Job loss due to AI? Edtech company Cheg fired 248 employees as students are now using chat
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Job loss due to AI? Edtech company Cheg fired 248 employees as students are now using chat

PratapDarpan
Last updated: 13 May 2025 10:52
PratapDarpan
3 weeks ago
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Job loss due to AI? Edtech company Cheg fired 248 employees as students are now using chat
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Job loss due to AI? Edtech company Cheg fired 248 employees as students are now using chatThe US-based online education platform is allowing 248 employees-about 22 percent of their workforce-it struggles to be relevant in a market that increases rapidly towards artificial intelligence-driven teaching solutions.

Job loss due to AI? Edtech company Cheg fired 248 employees as students are now using chat

The US-based online education platform is allowing 248 employees-about 22 percent of their workforce-it struggles to be relevant in a market that increases rapidly towards artificial intelligence-driven teaching solutions.

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Job loss due to AI? Edtech company Cheg fired 248 employees as students are now using chat
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The US-based online education platform is allowing 248 employees-about 22 percent of their workforce-it struggles to be relevant in a market that increases rapidly towards artificial intelligence-driven teaching solutions.

In an announcement made on Monday, the company said that this restructured step is aimed at reducing the cost and focusing their attention, as students rapidly offer cheggs such as Chatgpt on AI platforms such as traditional study assistance and textbook fare services.

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The company also revealed a plan to close its offices in the US and Canada by the end of this year. As part of its cost cut measures, Cheg has intended to score back on marketing, product development and administrative expenses. It expects to save between $ 45 to $ 55 million in 2025, and as $ 110 million in 2026.

The recent financial numbers of Cheg reflect the ongoing challenge. In the first quarter of 2024, it explained the decline of 31 percent in its subscriber base to 3.2 million. The revenue also fell from 30 percent to \ $ 121 million from year to year, with a similar decline in membership revenue.

According to the company, a large part of the problem lies in how students are now relying on free and fast options run by artificial intelligence. At the same time, platforms such as Google are showing AI-borne summs within rapid search results, making it difficult for material-based platforms such as chegg to maintain visibility. The company also took legal action against Google earlier this year, alleging that publishers were accused of removing traffic by removing traffic with their AI facilities.

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Cheg said that most of the costs related to estimated restructuring between $ 34 and $ 38 million would be calculated in the second and third quarter.

By the end of 2023, Cheg appointed 1,271 people. The company now joins the growing list of businesses, which is forced to be adaptable early or bottom, as the AI ​​continues to open up how the information is consumed – especially in education.

-Written with inputs from the rooters

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