Chegg's Share Price Plummets 99% Amid AI Competition and Digital Learning Decline

Chegg, an online education service, has seen its share price plummet by 99% in less than four years, largely due to a post-pandemic decline in digital learning and the rise of artificial intelligence (AI) tools like ChatGPT. These AI tools offer free alternatives to Chegg's tutoring services, which primarily assist students with homework. On November 12th, Chegg's CEO Nathan Schultz acknowledged the challenges posed by technological shifts, and the company announced plans to lay off 20% of its workforce.

Published on: Nov 21, 2024