Chegg(US:CHGG) Benzingaยท2025-10-28 05:57Core Insights - Chegg Inc. announced a significant restructuring plan, including a 45% reduction in its global workforce, primarily due to revenue declines attributed to the impact of artificial intelligence [1][3]. Restructuring Details - The restructuring plan involves laying off 388 employees, which is expected to reduce non-GAAP expenses by approximately $100-$110 million in 2026 [1][3]. - The company will incur charges of $15-$19 million, mainly for cash severance payments to the laid-off employees [3]. Leadership Changes - Executive Chairman Dan Rosensweig will take on the roles of President and CEO, while Nathan Schultz will transition to an Executive Advisor role [2]. Financial Performance - Chegg's stock price increased by 4.17% in after-hours trading following the announcement of the restructuring plan [2]. - Year-to-date, Chegg shares are down 14.29%, underperforming compared to the S&P 500 index, which has gained 17.15% [6]. Strategic Focus - The company is pivoting towards its business-to-business (B2B) operations, particularly its professional language learning platform Busuu and AI-related skills courses, which are projected to generate around $70 million in revenue in 2025 [5]. - Chegg aims to capitalize on the $40 billion+ skilling market as part of its new strategy [4]. Future Outlook - Chegg has reiterated its revenue and adjusted EBITDA guidance for the third quarter of 2025, with further details on the restructuring expected during the earnings call on November 10, 2025 [5].