Chegg’s Value Drops 98% from $12B to $159M, Lays Off Hundreds! 💼

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Summary:

  1. Massive Decline in Value
    Chegg, once valued at $12 billion, has seen its value drop to $159 million, leading to 319 layoffs—21% of its workforce.

  2. Struggling Against AI
    CEO Nathan Schultz blames Google’s AI search results and generative AI chatbots like ChatGPT for the company’s sharp decline, as students now prefer these tools over Chegg’s services.

  3. Financial Losses
    Chegg reported a loss of $212 million in just three months, as it struggles to adapt to the changing educational landscape.

  4. Subscriber Losses
    Since the launch of ChatGPT, Chegg has lost over 500,000 subscribers, including paying members, significantly hurting its revenue.

  5. Adapting to New Tech
    Despite setbacks, Chegg is working to integrate AI into its platform, aiming to remain relevant in the face of fierce competition from new technologies.

Read more at: SFGate