Chegg shutting down Israel operations, laying off entire workforce
Chegg shutting down Israel operations, laying off entire workforce
As part of a 23% cut in its global team, Chegg is closing its Israel office, resulting in the layoff of dozens of employees
American education technology company Chegg, which develops learning solutions for students worldwide, is closing its operations in Israel and laying off all its employees, Calcalist has learned. The company's response could not be obtained.
According to estimates, the company employs dozens of workers in Rehovot who will all be laid off in the coming months. The closure of the Israel office comes as part of the company’s restructuring plan, which will result in the departure of 441 employees, or 23% of Chegg's global workforce. The company said that the cuts will result in savings for 2025 of $40-$50 million.
Chegg’s decline comes against the backdrop of the advancements in artificial intelligence, especially ChatGPT, which replaces the need for many of the company's systems.
In May of this year, the company already warned that artificial intelligence would halt the growth of its business, a statement that resulted in a billion-dollar decrease in the company's value. Chegg is currently traded at a market cap of around $300 million.
Chegg Israel is one of the R&D center's of the American company, which employs approximately 2,000 people worldwide.
