Core Viewpoint - Chegg is laying off approximately 45% of its workforce, equating to 388 employees, due to the impact of artificial intelligence and reduced internet search traffic on its revenue [1][2] Group 1: Workforce Reduction - The company has announced a significant workforce reduction of 45%, following a previous layoff of 22% in May, attributed to the increasing adoption of AI tools [1][2] - Chegg's restructuring aims to adapt its academic learning products in response to the challenges posed by AI and diminished traffic from Google [2] Group 2: Financial Performance - Chegg's stock price peaked at $113.51 in February 2021 but has since plummeted by 99%, with its market capitalization dropping from approximately $14.7 billion to around $156 million [3] - The company offers various services, including textbook rentals and AI tools, but has faced declining revenue due to competition from generative AI software [3] Group 3: Leadership Changes - Dan Rosensweig has returned as CEO, replacing Nathan Schultz, who will remain as an executive advisor [4] - Rosensweig previously served as CEO from 2010 until April 2024, indicating a shift back to prior leadership [4] Group 4: Strategic Direction - Chegg has decided to remain a standalone company, concluding a strategic review process that began earlier in the year, with the board believing this will maximize long-term shareholder value [5] - The company had faced potential delisting from the New York Stock Exchange due to stock trading below $1, but it recovered above this threshold by May [6]