Chegg to reduce global workforce by about 4%

According to a regulatory filing, on June 12, 2023, Chegg announced a reduction of its global workforce by about 80 employees, or approximately 4% of the company’s current workforce, to better position the company to execute against its AI strategy and to create long-term, sustainable value for its students and investors. Chegg estimates that it will incur charges of approximately $5M-$6M in connection with these actions, primarily consisting of cash expenditures for severance payments, employee benefits and related costs. The company expects that the majority of these charges will be incurred in the second quarter of 2023 and substantially all of these expenditures will have been incurred by the third quarter of 2023. The estimated charges and the timing of such charges are based on certain assumptions, including local law requirements in various jurisdictions, and actual amounts may differ materially from such estimates. The company may incur other charges or cash expenditures not currently contemplated due to unanticipated events that may occur as a result of or in connection with the implementation of the planned workforce reduction. The company intends to exclude the charges associated with such reduction from its non-GAAP financial measures, including adjusted EBITDA.