Chegg to Continue as Independent Public Company, Plans to Cut 45% of Staff
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 27 2025
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Company Restructuring: Chegg will remain a standalone public company and undergo a restructuring, with Dan Rosensweig returning as President and CEO on October 27, 2025, while Nathan Schultz transitions to an Executive Advisor role.
Impact of AI and Revenue Decline: The company has faced significant traffic and revenue declines due to AI developments and reduced Google traffic, prompting a shift in focus towards a skilling market valued at over $40 billion.
Workforce Reduction: The restructuring will lead to a reduction of approximately 388 roles globally, representing about 45% of the workforce, aimed at lowering expenses by $100-110 million in 2026.
Future Growth Projections: Chegg anticipates generating around $70 million in revenue from its new skilling-focused initiatives in 2025, with expectations of double-digit growth in 2026, while maintaining its revenue and adjusted EBITDA guidance for Q3 2025.
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About CHGG
Chegg, Inc. provides a student-first connected learning platform. The Company provides individualized learning support to students as they pursue their educational journeys. Available on demand 24/7 and powered by quality learning insights, the Chegg platform offers students artificial intelligence (AI)-powered academic support thoughtfully designed for education, coupled with access to a vast network of subject matter experts who help ensure quality and accuracy. Its service and product offerings fall into two categories: Subscription Services, which encompass its Chegg Study Pack, Chegg Study, Chegg Writing, Chegg Math, and Busuu offerings that can be accessed internationally through its websites and on mobile devices, and Skills and Other, which include its Chegg Skills, advertising services, content licensing, print textbooks and eTextbooks offerings. Chegg Study subscribers have access to personalized, step-by-step learning support powered by AI and computational engines.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chegg, Inc. (CHGG) Shifts to B2B Model Amid 42% Revenue Decline
- Business Model Shift: Chegg, Inc. is transitioning to a business-to-business model to reduce reliance on student traffic, thereby mitigating risks associated with traffic volatility, particularly in the context of rapid generative AI adoption.
- Significant Revenue Decline: In Q3 2025, Chegg's total revenues fell by 42% year-over-year, with the core academic segment experiencing a revenue drop of over 40%, reflecting the pressures on traditional learning platforms amid AI tool proliferation and changing search behaviors.
- Traffic Challenges Intensified: By Q3 2025, Chegg's legacy traffic plummeted nearly 50%, primarily due to AI disruption and search-related issues, further weakening the company's market performance.
- B2B Priority Strategy: Chegg is prioritizing its B2B skilling operations, enhancing revenue visibility through contracted relationships with enterprises and workforce partners, thereby reducing reliance on volatile consumer traffic and potentially stabilizing performance.
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Chegg, Inc. Schedules Q4 2025 Earnings Release and Conference Call
- Earnings Release Schedule: Chegg is set to release its Q4 and full fiscal year 2025 earnings on February 9, 2026, after market close, enhancing financial transparency for stakeholders.
- Conference Call Timing: The company will host a conference call at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on the same day to discuss financial results, fostering better communication with investors.
- Access Methods: Investors can join the call by dialing 1-877-407-4018 or +1-201-689-8471 internationally, providing multiple access options to enhance participation convenience.
- Audio Replay Service: An audio replay will be available starting at 7:30 p.m. Eastern Time on February 9, 2026, until February 23, ensuring that investors who cannot attend live can still access the information.
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