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Rosensweig returns to Chegg as CEO, 45% jobs cut due to AI

EdTech

Rosensweig Leads Chegg’s AI Shift | Business Honor

Business Honor
29 October, 2025

With Rosensweig as new CEO, Chegg plans to lay off 45% of workforce to restructure the company.

Chegg, an educational technology company, said that it would eliminate 388 positions globally to improve efficiencies and cut costs to adapt to AI powered tools. The company said "the new realities of AI and reduced traffic from Google to content publishers have resulted in dramatic declines in Chegg's traffic and revenue". Chegg also recently announced that Dan Rosensweig would return to the role of Chief Executive Officer, effective immediately, replacing Nathan Schultz, who is stepping back to become Executive Adviser.

Chegg's legal suit against Google regarding AI-generated summaries by its intelligence ‘Gemini’ is still active, and claims that this practice has negatively impacted traffic and revenue by competing with the content. The company's stock performance has been poor for the past couple of years. The stock is down more than 10% this year, in addition to the terrific fall to 85.6% in 2024. This took place after the resignation of former CEO Rosensweig. The company had 1,271 employees as of the end of 2024 and is expecting significant costs of restructuring.

In September 2025, Chegg resolved a dispute with the Federal Trade Commission (FTC) for $7.5 million regarding alleged practices that made it difficult to cancel subscriptions. The company expects an additional restructuring charge between $12 million to $16 million to be incurred through the end of the fourth quarter of 2026. Layoffs consisted of 45% of Chegg’s global workforce, and the company expects a reduction of non-GAAP expenses from $100 to $110 million in 2026.