Large-scale staff reduction! “OpenAI’s ChatGPT will kill his business…” – AI eats jobs?What the company says about the pink slip

U.S.-based online learning platform Chegg has announced its intention to cut its workforce by about 4 percent as it faces the growing impact of OpenAI’s ChatGPT on its business, according to an IANS report. . His CEO at Chegg recently admitted that more and more students are relying on artificial intelligence to help them with their homework.

Updated June 14, 2023 | 8:37 PM IST

The company said the job cuts would be “about 80 employees” (representative image, source: Pixabay).

U.S.-based online learning platform Chegg has announced its intention to cut its workforce by about 4 percent as it faces the growing impact of OpenAI’s ChatGPT on its business, according to an IANS report. . His CEO of Chegg recently admitted that more and more students are relying on artificial intelligence to help with their homework, leading to a decline in Chegg’s customer base.

According to a report by the New York Post, the IANS report puts the company in a strategic position to execute its AI strategy and create sustainable value for its students and investors. It added that it plans to cut staff. As set out in its regulatory filings, the company will incur costs of approximately $5 million to $6 million related to these workforce reductions, including severance, employee benefits and related costs. I expect to.

The growing popularity of OpenAI’s chatbots raises concerns among critics who fear they could encourage student cheating, lead to significant unemployment, spread misinformation online, and even threaten human existence. is causing

Chegg’s business model, centered around subscription-based homework assistance, textbook rentals, and exam preparation services, is particularly vulnerable to the threat posed by ChatGPT. With just a few keystrokes, OpenAI’s chatbot can provide the same information as Chegg’s service for free.

Chegg’s admission that ChatGPT has impacted its financial performance has caused ripples in the global edtech sector. Chegg’s share price experienced a massive 50% drop, while London-listed Pearson’s share price fell 15%. Language-learning platform Duolingo and US-listed education company Udemy also suffered losses, down more than 10% and 5%, respectively, according to the Financial Times.

To meet this challenge, Chegg collaborated with OpenAI to develop its own AI chatbot called CheggMate. By launching this chatbot, Chegg aims to retain students and mitigate the impact of increasing AI adoption in education.

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