Due to the growing dependence of students on AI products such as ChatGPT and Google's AI Overviews, the US-based edtech company Chegg plans to lay off 22% of its workforce, affecting around 248 individuals.

According to a Reuters story, the US edtech company Chegg has stated that it would lay off around 22% of its employees. According to reports, the corporation has attributed this to students' growing use of AI-powered resources like ChatGPT and Google's AI Overviews. According to the online education organization, which provides tutoring, homework assistance, and textbook rentals, over 248 workers would be impacted by the layoffs.

In response to a shifting educational landscape where students are increasingly choosing AI-driven platforms over traditional edtech offerings, this decision aims to reduce expenses and streamline operations. Chegg's website traffic has been dropping for a number of months, and the company has previously issued a warning that this trend will probably continue before getting better.

In a report published by the news agency Reuters, Chegg said that although Google's slow transition of search traffic to its Gemini AI platform is affecting user engagement, the company's extension of its AI Overviews feature is retaining web traffic inside its search ecosystem.

Further adding to the difficulties encountered by conventional edtech platforms, Chegg has seen that other AI firms, such as OpenAI and Anthropic, are actively interacting with academics by providing free access to their subscription services. The company's choice to lay off employees is a reflection of the profound upheaval brought about by the quick development and uptake of AI in the educational field.