Chegg Inc., a Silicon Valley-based educational technology company, reported a 30% year-over-year decline in revenue to $121.4 million for the first quarter of 2025, alongside a net loss of $17.5 million. The company’s subscriber base fell by 31% to 3.2 million amid increasing competition from AI-powered tools such as ChatGPT. In response, Chegg announced plans to lay off approximately 248 employees, representing 22% of its workforce, and to close offices as part of cost-cutting and operational streamlining efforts. The company is also expanding its AI content licensing business, which generated $4 million in revenue this quarter, with expectations of growth in the next quarter. This marks Chegg’s third major round of layoffs in less than a year. The rise of AI tools has disrupted traditional edtech platforms, prompting shifts in how students and educators engage with educational content. Some educators have begun using AI tools themselves, leading to debates over academic integrity and the evolving role of AI in education.