Chegg Inc. (NYSE:CHGG) announced a massive restructuring plan on Oct. 27, 2025, that includes laying off 45% of its global workforce, or 388 employees. The company cited significant revenue declines from the “new realities of AI” as the primary driver for the move.

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Chegg Soars Over 4% After Announcing Restructuring Plan

Investors reacted positively to the drastic cost-cutting measures. After closing the regular session at $1.44 apiece, Chegg’s stock jumped $0.060, or 4.17%, in after-hours trading.

The sweeping changes also include a leadership shakeup. Executive Chairman Dan Rosensweig will reassume the roles of President and Chief Executive Officer, effective immediately. Nathan Schultz, the current President and CEO, will transition to an Executive Advisor role.

‘New Realities Of AI’ Fueled Shakeup At Chegg

In its official statement, Chegg directly blamed artificial intelligence and “reduced traffic from Google to content publishers” for a “significant decline in Chegg's traffic and revenue.” The restructuring is ...