Medium confidence
Jun 12, 2023
Chegg
−50 ~4% of workforce (~50 employees)
Attribution · verbatim quote
“Quote unavailable. Bloomberg headline characterised the cut as 'following shift to embrace AI'; the May 2023 earnings call disclosed direct ChatGPT impact on subscriber growth.”
Summary
Chegg cut ~4% of staff after disclosing in May 2023 that ChatGPT was eroding subscriber growth. The June 2023 reduction was framed by the company as a strategic shift to embrace AI; subsequent rounds in 2024–2025 deepened the cuts as ChatGPT continued to displace its homework-help business.
Evidence notes
- · No verbatim CEO quote tying the June 2023 cuts directly to AI; Rosensweig's prior earnings call commentary about ChatGPT impact is the strongest first-party signal.
- · Stock fell ~48% after the May 2023 ChatGPT disclosure, providing financial-market evidence of AI causation.