Chegg's Collapse: 22% Layoffs Expose the AI Disruption

Chegg's massive layoffs highlight the disruptive impact of AI on the education sector. The online education company announced it would cut about 22% of its workforce, or 248 employees, on Monday. This decision comes as Chegg faces increasing competition from free AI-powered tools, resulting in a dramatic decline in the company's value. A few years ago, during the pandemic lockdowns, Chegg was valued at over \$11 billion. Now, its value has fallen to just \$75 million. "Chegg has lost more than 99.3% of its value in just five short years," stated Justin Moore, the video's creator. Moore argues that Chegg's failure to adapt to the rise of AI sooner contributed to its downfall. The layoffs serve as a cautionary tale for businesses facing technological disruption. The situation underscores the need for companies to proactively adapt to emerging technologies to remain competitive.