Chegg (NYSE:CHGG) Trims Workforce; ChatGPT Threat Lingers

Online learning platform Chegg (NYSE:CHGG) has slashed about 4% (about 80 employees) of its global workforce, as the company is reorganizing its business due to the growing threat from Microsoft (NASDAQ:MSFT)-backed OpenAI’s ChatGPT. The company expects to incur charges in the range of $5 million to $6 million in connection with its reorganization efforts, with most charges to be incurred in the second quarter.

Chegg’s Reorganization Efforts

The move comes as Chegg is streamlining its structure to execute its artificial intelligence (AI) strategy. In a letter to the employees,…