Edtech firm Chegg to cut 4% of staff as AI risks business

US-based online learning platform Chegg has revealed its plans to cut about 4 per cent of its workforce, just weeks after its CEO admitted that OpenAI’s ChatGPT was crushing its business as more students are turning to artificial intelligence for homework assistance.

The company said that the cut would amount to “about 80 employees” and would “better position the company to execute against its AI strategy and to create long-term sustainable value for its students and investors”, reports New York Post.

According to a regulatory filing, the company expects to “incur charges of approximately $5 million to $6 million in connection with these actions, primarily consisting of cash expenditures for severance payments, employee benefits and related costs”.