"Chegg's revenue has sunk over the past few years, and its stock is down more than 95% from a pandemic-era valuation above $12 billion. The company hasn't been shy about casting blame, and in the news release, pointed the finger again: "The new realities of AI and reduced traffic from Google to content publishers have led to a significant decline in Chegg's traffic and revenue.""
"The company sued Google over the issue in February, calling the tech giant "parasitic." Chegg alleged that Google is using its "monopoly power" over web search to force publishers into making their content available for Google Search's AI overviews, which then diminish the need for a user to ever click through to Chegg's website. But there's no sign of Google removing the overviews, or settling with Chegg and providing it with some much-needed cash -"
Chegg announced another layoff of 388 employees that will eliminate about 45% of its workforce. The company will remain a standalone public company and is replacing its CEO. This layoff follows prior cuts in June 2024, November 2024, and May, bringing total job reductions to 1,396. Revenue and traffic have declined, and the stock has fallen more than 95% from a pandemic-era valuation above $12 billion. Chegg attributed declines to AI and reduced Google referral traffic, sued Google alleging monopoly practices, and said it is restructuring to cut costs. Google has asked a judge to dismiss the lawsuit and called the claims meritless.
Read at SFGATE
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