Shares of Chegg (NYSE:CHGG) surged 5.8% after announcing a major restructuring plan, including leadership changes and a 45% reduction in workforce to cut expenses by $100 million by 2026. The company aims to reposition itself in the growing skilling market, expecting $70 million in revenue from new offerings in 2025. After the initial jump, shares closed at $1.06, up 10.5%. The market views this news as significant but not game-changing, given Chegg’s volatile history. The stock is down 34.5% year-to-date, trading 58.5% below its 52-week high.

Investors in Chegg are seeing a 58.5% decline from its 52-week high of $2.65, with shares now at $1.10. The company recently announced a major restructuring plan, including a 45% reduction in its workforce and the return of its former CEO to navigate challenges from Artificial Intelligence. This move aims to address financial distress caused by declining revenue, subscribers, and web traffic due to free AI tools in the academic sector. Chegg’s stock has had 101 moves greater than 5% in the last year, indicating high volatility.

Read more at Barchart: Why Are Chegg (CHGG) Shares Soaring Today