Chatgpt forces the edtech companies to reduce staff

Online education quickly switches from traditional formats to AI services. A striking example is the American company Chegg, which announced a reduction of 22% of employees (248 people) and closing offices in the US and Canada. The reason is the enormous care for users of neural networks such as Chatgpt, who offer immediate answers to tasks without subscriptions and complex interfaces.

Chegg notes that students go to their site less often: in the first quarter of 2025 the number of subscribers fell by 31%and sales – by 30%. Part of the traffic “intercepted” Google, which is introduced by AI overviews -Ready -Made answers directly in the search results. This robes the educational platforms of the most important source of the public.

Chatgpt forces the edtech companies to reduce staff

Why AI competition wins:

  • Speed ​​and accessibility. Chatgpt and analogues provide solutions in seconds without the need for registration or payment.
  • Personalization. Algorithms adapt to the level of the user and offer detailed explanation.
  • Free alternatives. OpenAI and Anthropic actively work together with educational institutions and offer free access to their platforms.

The situation raises the future of tutoring and paid educational services. According to polls, 67% of the university students in the United States already use chatgpt to complete homework, and 42% find it more useful than consultation with teachers. The trend indicates that AI is not an addition, but the most important replacement of classic teaching methods.

🥹 guys only want one …

Source: VG Times

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