You’ve probably heard whispers online: “Is Chegg dead?”
The platform that once dominated homework help for students is now struggling to stay relevant.
Let’s unpack why Chegg is in trouble, how AI tools like ChatGPT are reshaping education, and whether the company can survive.
Chegg’s Stock Crash And Financial Troubles
Chegg’s stock has dropped 99% since 2021, wiping out $14.5 billion in value.
Think of it like this: if you’d invested $100 in Chegg at its peak, you’d have just $1 left today.
Here’s what’s happening:
- Subscriber Loss: Over 500,000 users canceled their Chegg subscriptions after ChatGPT launched.
- Revenue Decline: The company lost $830 million in 2024 alone.
- Competition: Free AI tools and Google’s AI-powered search are stealing Chegg’s customers.
“Students don’t want to pay for answers when AI gives them instantly for free,” says a Reddit user in the linked thread.
Why ChatGPT Killed Chegg’s Momentum
Chegg’s old model relied on human experts to answer homework questions. But AI changed everything:
1) Speed vs. Slowness
- Chegg: Takes hours (or days) to deliver answers written by tutors.
- ChatGPT: Generates answers in seconds.
2) Cost
- Chegg: Charges $15–$20/month.
- ChatGPT: Free or $20/month (for advanced features).
A recent survey found 62% of students prefer ChatGPT, while only 30% still use Chegg.
Chegg’s Layoffs And Restructuring
To survive, Chegg is cutting costs drastically:
| Year | Layoffs | Reason |
|---|---|---|
| 2024 | 441 employees | Shift to AI, cost reduction |
| 2024 | 319 employees | Further restructuring |
Employees say the company was slow to adopt AI.
“We asked for AI tools in 2022, but leadership waited until ChatGPT blew up,” one former worker shared.
Can Chegg Survive the AI Revolution?
Chegg is trying to adapt. For example:
- CheggMate: A new AI tool built with OpenAI (ChatGPT’s creator).
- Focus on “Trusted” Answers: Highlighting human-reviewed solutions.
But here’s the problem:
- Students want free, instant help, not slower, paid alternatives.
- Google now uses AI to answer homework questions directly in search results, with its new AI Overviews feature.
The Future of Chegg
Chegg isn’t dead yet, but it’s on life support. Here’s what could happen next:
- Recovery: If Chegg’s AI tools gain traction, it might survive as a niche service.
- Acquisition: A bigger company (like Google) could buy Chegg for its database of 46 million answers.
- Decline: If free AI keeps improving, Chegg could fade into obscurity.
Final Thoughts: A Cautionary Tale
Chegg’s downfall shows how fast AI can disrupt industries.
For students, this is great news — homework help is now cheaper and faster. But for Chegg, the clock is ticking.
“Chegg taught us that clinging to old models in a tech-driven world is risky,” says an education analyst.
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