Chegg says restructuring to impact about 21% of workforce

Chegg (CHGG) stated: “We are executing a restructuring plan to better align our cost structure with recent industry challenges and the negative impact on our business. While these difficult decisions are essential for Chegg’s future, we recognize the unfortunate impact they may have on many of our employees and their families. Our restructuring will impact 319 employees, or approximately 21% of the company. In 2025, the company expects to realize non-GAAP expense savings of $60-$70 million from these employee departures, real estate savings, as well as other cost rationalizations. Chegg expects to incur a $22-$26 million charge related to the restructuring. Of this charge, $18-$22 million will be incurred in cash representing mostly severance payments, with the remaining amount representing non-cash charges. We expect that a substantial portion of the cash and non-cash charges will be incurred in the fourth quarter. We anticipate these activities and substantially all charges will be completed by June 30, 2025. The cost savings from the restructuring announced in June, coupled with the restructuring announced today, will result in a combined non-GAAP savings of $100-$120 million in 2025.”