Chegg is currently trending in "Business and Finance" primarily due to significant challenges to its business model caused by the rise of artificial intelligence (AI) and the company's drastic response to these pressures.

In simple terms, Chegg is an online learning platform that historically provided services like textbook rentals, homework help, and tutoring to students. Its popularity surged during the pandemic when many students were learning remotely.

However, the rapid development and widespread adoption of generative AI tools, such as ChatGPT and Google's AI summaries, have severely impacted Chegg's core business. Many students are now turning to these free AI alternatives for quick answers and assistance, leading to a substantial drop in Chegg's website traffic and a decline in its revenue.

In response to this disruption and financial strain, Chegg announced a major restructuring plan on October 27, 2025. This includes laying off approximately 45% of its global workforce, amounting to 388 employees. The company is also undergoing a leadership change, with its former CEO, Dan Rosensweig, returning to lead the company.

Furthermore, Chegg is attempting to pivot its business focus towards the "skilling market," aiming to offer services like professional language learning, workplace readiness, and AI-related skills courses to a business-to-business (B2B) audience, in an effort to find new areas for growth. The company's stock has experienced a significant decline, falling over 85% in 2024 and continuing to drop in 2025, reflecting investor concerns about its financial health and future prospects in a rapidly changing educational technology landscape.