An update from Chegg (CHGG) is now available.
Chegg has announced a significant restructuring plan, which will see a 23% reduction in its global workforce, affecting around 441 employees. This move is expected to cost the company between $10 million to $14 million, mainly due to severance packages, with most charges expected by the end of 2024. Despite the upfront costs, Chegg anticipates that these measures will lead to substantial annual savings of $40 million to $50 million starting in fiscal year 2025, although there’s a possibility that actual costs may vary due to unforeseen events. These forward-looking statements are fraught with uncertainties and the actual outcomes may differ materially.
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