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www.chegg.comChegg, Inc. announced a reduction in its lease obligations, resulting from a negotiated lease termination agreement for its corporate headquarters in Santa Clara, California. The agreement will allow Chegg to terminate the lease early on December 31, 2025, freeing the company from paying monthly rent between July 2025 and December 2025, leading to an anticipated reduction of $5.3 million in contractual operating lease obligations. This move is part of a broader restructuring plan that includes a workforce reduction affecting 248 employees, aimed at aligning costs with ongoing industry challenges and generating estimated annualized non-GAAP cost savings of between $45 million to $55 million for fiscal year 2025.
Operational UpdateChegg, Inc. has announced a restructuring plan that will lead to charges of approximately $34 million to $38 million, primarily due to a workforce reduction impacting 248 employees, or about 22% of its global staff. The company anticipates that these costs will be largely incurred by the fourth quarter of 2025. The restructuring is aimed at realigning the company’s cost structure amid declining traffic and other industry challenges. Chegg expects to achieve annualized non-GAAP cost savings of $45 million to $55 million in fiscal year 2025 and $100 million to $110 million in fiscal year 2026. Additionally, an agreement to terminate the lease of its corporate headquarters is expected to save $5.3 million in operating lease obligations.
Operational AnnouncementChegg, Inc. has announced the early termination of its corporate headquarters lease in Santa Clara, California, effective December 31, 2025. This decision is part of a broader restructuring plan aimed at streamlining operations and aligning costs with industry challenges, including a decline in traffic. The lease termination will relieve the company of approximately $5.3 million in operating lease obligations and will not require any rent payments from July 2025 to December 2025. The restructuring plan is expected to impact about 248 employees, resulting in charges of around $34 million to $38 million, but is projected to yield annualized non-GAAP cost savings of $45 million to $55 million in fiscal year 2025 and $100 million to $110 million in fiscal year 2026.
Operational Announcement