The EdTech industry is evolving rapidly, with innovation opening new doors for learners and educators around the world. But that same rate of change has also brought disruption, and, in some cases, workforce reductions. For many EdTech professionals in the United States and Canada, recent layoffs have been a stressful and unexpected part of the journey. Understanding the why behind these layoffs can help you navigate your next steps with clarity, confidence, and strategy.
The Big Picture: Why EdTech Companies Are Reducing Headcount
Layoffs in EdTech aren’t about individual performance. They’re about structural shifts in the market. Several key trends are shaping today’s hiring landscape:
1. AI Is Redefining What EdTech Looks Like
One of the most visible forces impacting EdTech companies is the rise of artificial intelligence. Tools like generative AI and AI-powered learning assistants are changing how students search for help, complete assignments, and interact with educational content.
For example, Chegg, a company once widely used for homework help, tutoring, and textbook rentals, has announced significant workforce reductions in 2025. The company cited the increasing use of AI tools and reduced referral traffic from search engines as core reasons for restructuring. In October 2025, Chegg cut roughly 45% of its workforce as it pivoted its business model in response to these shifts. Earlier in the year, it also reduced about 22% of its team in a prior round of cuts.
These changes reflect how quickly learner expectations and technology adoption are evolving and how companies must adapt to stay relevant.
2. Demand Shifts and Funding Pressures
Beyond AI, changes in market demand and tightening funding can also lead to layoffs. Some companies face lower growth expectations, evolving customer priorities, or shifts in international education pipelines that affect revenue projections. In Canada, for example, ApplyBoard had to reduce staff after changes in student visa patterns and global study demand influenced its business outlook.
3. Strategic Restructuring
In some cases, companies are reducing headcount as part of broader restructuring strategies, streamlining teams, refining product focus, or shifting investments toward new areas like workforce readiness, skill development, or AI-driven services. These decisions are often driven by long-term sustainability rather than short-term cost-cutting.
How to Navigate EdTech Layoffs
Experiencing a layoff can be disorienting, especially when you’ve poured your heart into your work. It’s important to acknowledge that layoffs are often beyond your control. Instead, they reflect industry dynamics, not personal failure.
Here are a few tips to help you move forward with resilience:
Take a Breath... Then Plan Your Next Move
Give yourself space to process the change. Lean on your support network and allow yourself time to reflect before diving into the next chapter. Many professionals find that quiet reflection leads to clearer goals and renewed motivation.
Evaluate Your Financial Position
Understanding your current finances including severance, unemployment benefits, and ongoing expenses will help you make grounded decisions about your job search, professional development, or even pivoting into new roles.
Reconnect with Your Community
You’re not alone. Former teammates, alumni networks, LinkedIn communities, and industry forums can be invaluable sources of support, referrals, and insights into current EdTech opportunities.
Build Momentum With Skills and Market Awareness
Use this time to sharpen in-demand skills like AI integration, data literacy, product management, instructional design with AI tools, or learner analytics. These capabilities are increasingly core to EdTech hiring.
Practice Interviewing and Personal Branding
Update your resume, portfolio, and online presence. Treat your LinkedIn headline, bio, and profile summary as a chance to tell your story not just list tasks you’ve done, but how you drive impact in education and technology.
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