Chegg announced layoffs affecting roughly 388 roles—about 45% of its workforce—and a leadership reshuffle that saw Executive Chairman Dan Rosensweig resume the CEO role as the company pivots amid an AI‑driven traffic decline. Executives blamed external AI summaries (notably search‑engine AI features) and changing student behaviors for large subscriber losses and steep revenue declines. The company said it will refocus on business‑to‑business skills training and language offerings while investing in AI integration; it forecasts cost savings and narrower product strategy. Chegg’s moves mirror wider disruption in the ed‑tech market where generative AI is both a competitive threat and a product opportunity. Why higher ed watches: Chegg has long been a conduit between students and online study resources—its contraction changes the ecosystem for test prep, homework help and first‑line tutoring. Admissions offices, academic integrity offices and campus bookstores may see altered student behavior as third‑party platforms reshape where students seek help.