Chegg announced a major restructuring that will eliminate roughly 388 roles — about 45% of its workforce — citing the rapid uptake of generative AI tools and a sharp decline in Google‑driven referral traffic to its learning resources. The company said the changes will produce one‑time restructuring charges but materially reduce 2026 operating expenses. Leadership moved Dan Rosensweig back to the CEO role as the firm pivots to an AI‑first product strategy centered on a personalized AI tutor trained on verified Chegg content. The cuts underscore the immediate operational and workforce implications for edtech providers as student behavior shifts toward free generative AI assistants and search referrals fall. Universities, career services and faculty who partner with third‑party learning platforms will watch Chegg’s transition to see how commercial AI tutoring products evolve and whether integrated, institution‑licensed AI tools can maintain pedagogical integrity while meeting student demand.