By Sabela Ojea

Chegg logged wider losses in the third quarter after seeing the size of its subscriber base squeeze, and said it is further reducing its workforce in another restructuring push.

The education-technology company on Tuesday posted a net loss of $212.6 million, or $2.05 a share, compared with a loss of $18.3 million, or 16 cents a share, for the same period a year earlier.

Stripping out one-time items, the company's earnings per share came in at 9 cents. Analysts polled by FactSet had forecast adjusted earnings of 7 cents.

Revenue fell 13% to $136.6 million, better than the $134.1 million expected by Wall Street. Subscription-services revenue dropped 14% to $119.8 million.

Overall, Chegg ended the quarter with 3.8 million subscribers, declining 13% from the same period a year earlier and representing a sequential decline from the 4.4 million subscriber-base in the second quarter.

Chegg said it is cutting its headcount by 21%, impacting 319 employees, as it operates in a fast-changing global education industry that is embracing AI.

"Recent technology shifts and generative AI have created significant headwinds, and as a result, we are undertaking an additional restructuring," Chief Executive Nathan Schultz said.

The company said the additional layoffs, together with the 21% workforce reduction announced in June, will result in adjusted savings of $100 million to $120 million in 2025.

Chegg's outlook comes as it guides for another decline in total revenue and subscription revenue in the fourth quarter. Chegg forecasts revenue of $141 and $143 million, down from $188 million a year earlier, and subscription revenue in the range of $126 and $128 million.

Wall Street had expected higher revenue of $161.4 million for the fourth quarter.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

November 12, 2024 16:46 ET (21:46 GMT)

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